3Com Corporation (COMS) Message Board

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Technology Stocks : 3Com Corporation (COMS)

COMS 0.00130

-18.8%

Nov 7 11:47 AM EST

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To: dav who wrote (38539)	1/28/2000 6:10:00 PM
From: Peter V	Read Replies (1) of 45548

Let's see if we can read, shall we? Palm Inc. . . . said Friday it would sell 23 million shares . . . in its initial public offering. The company said it will net $320.7 million from the offering and will net another $225 million from private placements by America Online Inc., Motorola Inc. and Nokia Corp. . . . After the offering, there will be about 570 million shares outstanding . . . Of that, 530 million shares will be held by 3Com, the filing said. The company plans to divest of its holdings within six months by distributing the shares to 3Com shareholders. So it doesn't matter how many shares AOL, MOT, or NOK got (although if you care to take the 23 mill from the IPO and subtract it from the 570 outstanding, and compare that to the 530 retained by 3Com, it would be 17 million shares for those guys). 3Com will distribute all of its retained 530 mill shares to COMS holders, and COMS has 342 mill outstanding shares. 530 / 342 = 1.55 shares of PALM for each share of COMS. I can't figure out where the 4:1 ratio came from, but it doesn't make any sense.

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