Many shareholders besides Mr. Perelman are unhappy about inevitable further stock dilution in any deal with bondholders.

Typically, fears exist of stock dilution, though the structure of the Marconi offer makes this less of an issue.

The deal would require shareholder approval due to the significant common stock dilution.

Mr. Carnes said he did not expect the stock dilution to amount to more than a few cents a share.

Corporations often buy the stock their executives are selling to avoid stock dilution.

Many investors have seen their holdings in Russia wiped out by several major stock dilutions over the last few years.

Under the heading "Lessons Learned," one document she showed Mr. Lay states that the Raptor deals had "transferred risk in the form of stock dilution."

In this way, existing shareholders can maintain their proportional ownership of the company, preventing stock dilution.

This method provides capital for various corporate purposes through the issuance of equity (see stock dilution) without incurring any debt.

See the discussion at stock dilution.