Avnet plans to pay principal of 2% convertible in cash on conversion

New York, Nov. 11 - Avnet Inc. said it plans to make an irrevocable decision to pay cash up to the principal amount of its 2% convertible debentures in response to any conversion of the securities.

By making that choice, the company would avoid negative effects from the new accounting rule requiring companies to treat the contingent convertible securities as if they are fully converted when calculating diluted earnings per share, whether the contingent trigger has been hit or not.

Avnet, a Phoenix-based distributor of electronic components, enterprise network and computer equipment and embedded subsystems, disclosed its intentions in a 10-Q filing with the Securities and Exchange Commission Wednesday.

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