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AOL selling more shares
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June 30, 1998: 8:24 a.m. ET
Online leader's shares dip in Europe after $500M stock offering announced
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NEW YORK (CNNfn) - America Online Inc. shares may take a hit in early Wall Street trading Tuesday after the online service leader said it will launch a $500 million stock offering in a move that could signal future buyouts.
Shares of America Online (AOL) fell about 5 percent in European trading Tuesday after closing down 4-1/2 at 103-1/4 on Wall Street Monday.
But that came after AOL shares have been on a roll, opening an all-time high of 109-1/2 Monday.
After the closing bell Monday, the Dulles, Va.-based company said the offering would add about 4.83 million shares to common stock outstanding. Currently, America Online has about 220 million shares outstanding.
An AOL spokesperson said the proceeds are to be used to strengthen the company balance sheet and increase financial flexibility.
The offering follows a universal shelf registration AOL filed June 16 for up to $1 billion in new shares.
By simple supply and demand dynamics, share prices often fall when companies offer new common stock. But AOL executives said in the past they are also considering buyouts, which could drag on the company's shares. 
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