Slumping Internet provider has 2-for-1 stock split

Firms like MindSpring are using splits in effort to boost stock prices

High-technology shares

May 26, 1999|By COX NEWS SERVICE

ATLANTA -- Internet provider MindSpring Enterprises, whose stock price has been steadily dropping over the past few weeks, announced a 2-for-1 stock split yesterday.

Shareholders at the close of business June 11 will receive one additional share of MindSpring common stock for each share held. The remaining shares will be distributed June 25.

MindSpring stock has fallen from a 52-week high of $133 on April 13 to its close of $69 yesterday. While the stock has surged during the past 12 months, it has increased just 13 percent so far this year.

The stock dip is part of a larger Wall Street sell-off of technology stocks, which have been in free fall over the past few weeks. But many companies, including The globe.com and interactive advertising service DoubleClick, have seen their shares rise after announcing stock splits.

The split announcement came immediately after the approval by MindSpring shareholders at their annual meeting yesterday of a proposal to increase the number of outstanding shares. Currently, 30.7 million shares of MindSpring stock are outstanding.

Pub Date: 5/26/99

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