Cisco seeking to sell bloc of Akamai stock

September 27, 2000|By BLOOMBERG NEWS

WASHINGTON - Cisco Systems Inc. filed yesterday to sell $14.3 million of stock in Akamai Technologies Inc., a maker of software for speeding delivery of information on the Internet.

Cisco, the world's biggest maker of computer networking equipment, filed with the Securities and Exchange Commission to disclose plans to sell 250,000 shares of Cambridge, Mass.-based Akamai.

San Jose, Calif.-based Cisco invested $49 million in Akamai in August 1999, before the initial public offering, as part of an alliance to develop technology to improve Web content delivery. Cisco bought preferred stock, later converted into about 3.7 million common shares, according to Akamai filings with the SEC. Cisco's cost basis in the investment came to $13.12 per common share.

Akamai shares rose $1.25 to $57.38 yesterday. After fetching $26 apiece in the IPO in October, the shares rose as high as $345.50 in January before falling to current prices.

Cisco listed its sales as expected to occur on or around Sept. 20, in its SEC disclosure of the planned transaction. Final details, if the sales are completed, would be disclosed on a later form.

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