Usually it's unnerving when the founders of a company you have a stake in dump their shares. In the current market, when they're apparently doing it against their will, it's just weird.
On Thursday,
Boston Scientific Corp.'s stock traded abnormally heavily, with
38 million shares changing hands. The total included "involuntary sales" of about 13 million shares owned by co-founders Pete Nicholas and John Abele or held, directly or indirectly, by a trust for the benefit of Abele's children.
Apparently, 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 Holdings Inc. -- triggered automatic share selling related to collateralized loans of Nicholas, Abele and the trust.
Abele said the automatic sales are disappointing and beyond his control and that his confidence in the company and its long-term prospects remains undiminished.
The founders said further sales could be triggered. On Friday BSX shares ended the day at $7.31, down about 13% and off a 52-week high of $15.31. -
Baz HiralalSee the Boston Scientific press release
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