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© St. Petersburg Times, published December 2, 2002
Paradyne Networks long has been angling for some investor attention but no doubt this isn't what it bargained for.
Merrill Lynch has compiled a list of 29 companies that might announce a reverse split in order to keep their stock price above $1 and thereby avoid "delisting," which would force them to trade over the counter as so-called penny stocks. Thirteen of the companies are highlighted for their "downward stock momentum." The sole Tampa Bay area candidate: Paradyne, a maker of high-speed Internet access equipment, whose stock is hovering between $1 and $2 a share.
Paradyne chief financial officer Pat Murphy said there has been no need to consider a reverse split because the company's stock has traded very infrequently below a buck. "There's been no communication with Merrill Lynch," he said. "This is Merrill Lynch's opinion alone."