Staley said it had replaced the offering with a more expensive convertible preferred issue.

Analysts, arbitragers and fund managers have varying estimates about the market value of the new convertible preferred issue.

The convertible issue will be listed, but the others will not.

The convertible issue can be exchanged into 25 percent of the company's common stock in 1993.

His goal is to identify convertible issues with high potential for gains.

The money raised for telecom companies through the sale of debt - notes, bonds and convertible issues - was even larger, with bigger losses.

Illiquidity can plague smaller issues as well - and about 80 percent of convertible issues are under $100 million.

The convertible issue can be exchanged for Stevens common stock at about $51.35 a share.

As a result, convertible issues began to trade as if they were merely bonds.

Stone was unwilling to go ahead with a convertible issue unless its common stock was trading above $46 per share.