Lehman Brothers crisis incites Boston Scientific stock sell-off
The bankruptcy of Lehman Brothers Holdings has taken a toll on Boston Scientific, forcing the founders to sell approximately 13 million shares.
Sale of the shares by the Boston Scientific founders, Peter M. Nicholas and John Abele, and those held by a trust for Abele’s children, was prompted by the crisis in the financial markets and an inability to access assets because of the Lehman bankruptcy, the Natick, Mass.-based company said.
Boston Scientific warned that “there may be additional automatic, involuntary selling today or in the near future,” and the sell-off caused the shares to drop 4.9 percent.
“The recent turmoil in the financial markets—combined with an inability of the co-founders and the trust to immediately access assets due to the bankruptcy of Lehman Brothers—triggered automatic share selling related to collateralized loans,”according to a company statement.
“These sales are involuntary and related to personal planning objectives and the current extraordinary circumstances in the financial markets,” Nicholas said. “They in no way reflect on the company.” Abele echoed Nicholas’s vote of confidence in the company.
“These automatic sales are disappointing and beyond our control,” Abele said. “My confidence in the company and its long-term prospects remains undiminished.”
Sale of the shares by the Boston Scientific founders, Peter M. Nicholas and John Abele, and those held by a trust for Abele’s children, was prompted by the crisis in the financial markets and an inability to access assets because of the Lehman bankruptcy, the Natick, Mass.-based company said.
Boston Scientific warned that “there may be additional automatic, involuntary selling today or in the near future,” and the sell-off caused the shares to drop 4.9 percent.
“The recent turmoil in the financial markets—combined with an inability of the co-founders and the trust to immediately access assets due to the bankruptcy of Lehman Brothers—triggered automatic share selling related to collateralized loans,”according to a company statement.
“These sales are involuntary and related to personal planning objectives and the current extraordinary circumstances in the financial markets,” Nicholas said. “They in no way reflect on the company.” Abele echoed Nicholas’s vote of confidence in the company.
“These automatic sales are disappointing and beyond our control,” Abele said. “My confidence in the company and its long-term prospects remains undiminished.”