In February, Cisco sold 2.5 million shares of KPMG Consulting Series A mandatorily redeemable convertible preferred stock to KPMG Consulting for $525 million, the price originally paid for the stock, according to the quarterly report filed with the Securities and Exchange Commission. Cisco sold 1.4 million preferred shares to KPMG for $378 million.

The report said Cisco's remaining portion of preferred stock was converted to 9.9 percent of the outstanding common stock of KPMG Consulting upon the completion of last month's initial public offering. In January 2000, Cisco purchased 5 million shares of preferred stock in KPMG Consulting for $1.05 billion.

-- By SmartPros News Staff

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