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Mergers & acquisitions

Corvis Insiders Buy Up

A recent rash of stock purchases by top execs at Corvis Corp. (Nasdaq: CORV) is just another piece of a puzzle that Wall Street's trying to unravel.

According to documents filed yesterday with the U.S. Securities and Exchange Commission (SEC), five top Corvis staffers, including CEO and chairman David R. Huber, acquired over 600,000 shares of stock at a discount price of $0.56 per share on June 13. (Corvis shares were selling for about $1.56 early today.)

Here's the breakdown, in alphabetic order.
  • Lynn D. Anderson, SVP, CFO, treasurer: 171,425 shares
  • James M. Bannantine, president: 143,000 shares
  • Timothy C. Dec, VP, chief accounting officer: 120,000 shares
  • David R. Huber, chairman and CEO: 53,574 shares
  • Kim D. Larsen, SVP, general counsel, secretary: 143,000 shares
While the total value of the buys is tiny by corporate standards --just about $353,359.44 -- the case is curious in that the execs are buying for the first time in nearly a year. A call to Corvis for clarification went unanswered at press time.

According to Thomson Financial Network, the last time a Corvis honcho bought stock was in August 2002, when president James Bannantine, who joined the company in 2001 (see Corvis Loses Sales VP; Gains President), bought about 500,000 shares.

At least two Wall Street analysts say the stock purchases are just another part of the conundrum that's Corvis. Of late, analysts are struggling to decide whether to treat the company as an equipment provider or a carrier, in light of its recent acquisition of Broadwing Inc. (NYSE: BRW) (see Broadwing's Got a New Boss).

"We've had the stock under review since the day after the Broadwing announcement, and it continues to be under review," says Simon Leopold of Merrill Lynch & Co. Inc. Until he and his colleagues can confidently agree on a model for Corvis, he says, they'll stay without an opinion.

— Mary Jander, Senior Editor, Light Reading

montana 12/4/2012 | 11:53:14 PM
re: Corvis Insiders Buy Up Are these share purchases? The SEC form looks to me as though these are additional options (and not share purchases) that are exercisable at the $0.56/share beginning in November of this year
LightBeating 12/4/2012 | 11:53:14 PM
re: Corvis Insiders Buy Up The staff at Lightreading just loves to turn any sort of event happening at Corvis into a mysterious international plot. How a simple boring and insignificant fact like insiders buying for the incredible amount of $300K becomes a headline news keeps astonishing me!

LB
particle_man 12/4/2012 | 11:53:21 PM
re: Corvis Insiders Buy Up Mary,

Why exactly is this a mystery? I'd buy beacoup shares too if I could get them for 1/3 fair market value.

What an exceptional risk these brave executives are taking to demonstrate confidence in their corporation. Not!

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