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Emulex Stock Rises on News of Share Split

October 07, 2000|From Times Staff and Wire Reports

Emulex Corp.'s stock rose Friday in extended trading after the developer of high-speed data storage products said directors approved a 2-for-1 split of the stock, which has more than doubled in price in the last year.

The split, which requires shareholder approval, would be the third in little more than a year for Costa Mesa-based Emulex.

The stock moved up as much as $5.50, or 5.1%, to $113.50 a share after the close of regular Nasdaq trading. During normal trading hours, the shares had dropped $3.50 to $108.

The proposed stock split, which will be discussed at a shareholders' meeting Nov. 16, is aimed at reducing the share price and making more shares available to expand its investor base.

The shares also were split 2 for 1 on Aug. 30, 1999, and last Nov. 18.

Although the stock has doubled over the last year, the shares have been trading far below their high of $225.50 in late March.

The company also was jolted in August by a phony press release loaded with negative publicity that sent the stock tumbling from $113 to less than $43. Federal authorities have accused an El Segundo man, Mark Simeon Jakob, 23, of orchestrating the hoax.

If shareholders approve the split, the company will determine a payable date. Emulex would have 73 million shares of stock outstanding after the split.

Bloomberg News was used in compiling this report.

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