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SEC investigating McAfee's stock options

Security software maker says it will cooperate with Feds' formal probe into option-granting practises.

Security software maker McAfee said on Friday that the U.S. Securities and Exchange Commission is conducting a formal probe into the company's stock option-granting practices. "On June 7, 2006 McAfee received a document subpoena pursuant to a formal order of investigation related to the company's stock option practices," the Santa Clara, Calif.-based company said in an SEC filing. "The company intends to cooperate with the SEC."

McAfee, along with many other companies, is investigating its prior practices regarding stock option grants. It had previously disclosed it was engaged in "an informal dialogue" with U.S. securities regulators over grants made in the past decade.