CDNOW "CLARIFIES,"
STOCK INCHES DOWN
Almost Definitely. We Think.
CDNow shares were 2-9/16 higher in mid-afternoon trading on the NASDAQ. The 111% gain made the stock the market's percentage-gain leader on a day when the composite index had surged by more than 6%. CDNow's trading volume was almost nine times higher than its daily average.
The share price has tumbled from a 12-month closing high of 23-1/4 in July amid concerns that it could be among the first Internet retailers to fall victim to an industry shakeout.
On Friday (6/2), President and Chief Executive jason olim',390,400);">jason olim',390,400);">Jason Olim said CDNow was "...on schedule with our investment process, and we expect to announce a deal with a merger partner/investor" by June 30.
Today, the company ammended Olim's comments with a statement that read in part: "The company has had discussions with five different groups about a possible investment or merger transaction. CDNow has requested final proposals from interested parties... There can be no assurance that proposals will be submitted, or that a transaction will be consummated prior to June 30, or at any time. But it would be nice to have some extra cash for the Fourth of July weekend; my cousin's having a beach party."
