October 9, 2008
BSX Founders Kiss 13M Shares Goodbye
By Matthew L. Brown
The gasping stock market managed to suck 13 million shares of Boston Scientific stock away from the company's founders Pete Nicholas and John Abele Wednesday.
The shares were sold by Nicholas and Abele involuntarily and the two men tried to assure stock holders that the sales were not related to the company's performance.
According to BSX, the sale was triggered by collateralized loans held by Nicholas, Abele and Abele's children's trust fund as a result of the co-founders' inability to "immediately access assets due to the bankruptcy of Lehman Brothers" to pay those loans.
The struggling medical device company said additional involuntary selling may take place today "or in the near future."
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