Jabil Circuit Director In Hedging Pact For 250,000 Shares
DOW JONES NEWSWIRES
WASHINGTON -- Jabil Circuit Inc. (JBL) director Thomas Samsone signed a forward sales contract for 250,000 shares, according to a Form 4 released Friday by the Securities and Exchange Commission.
The contracts are a type of hedging agreement investors use to limit exposure to share price declines. Stockholders get an upfront cash payment (Ka Ching!) for stock based on an average share price. After a set period of time - three years in this case - the holders must settle in cash or deliver a number of shares equal to the value of the stock at the time of the cash payment.
The filing didn't specify the per-share price for the transaction other than to say that the number of shares Samsone will have to deliver is based on a function of the closing price of Jabil Circuit common stock on June 26, 2006.
Jabil Circuit designs, produces and assembles circuit boards and related components for electronic equipment and systems.