MGI Pharma Inc. on Wednesday said it has exercised its rightto convert all of its outstanding Series I preferred stock intoshares of MGI common stock.
All 352,000 shares of preferred, held solely by AmericanCyanamid Co., will be converted into 414,117 shares of common(NASDAQ:MOGN) effective Friday.
After the transaction, Cyanamid will hold 941,483 shares, equalto 8.4 percent of outstanding shares.
The company will pay about $111,000 of accumulateddividends, but will save up to $220,000 in annual dividendpayments, said MGI spokeswoman Lori Weiman.
The stock climbed $3.25 on Wednesday to close at $23.88.
Cyanamid bought the stock in 1983 when MGI was involved inbiotechnology R&D for veterinary and agriculture markets. In1987, the Minneapolis company restructured to focus solely onhuman pharmaceuticals.
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