3Com Corporation (COMS) Message Board

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Technology Stocks : 3Com Corporation (COMS)

COMS 0.00130

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Nov 7 11:47 AM EST

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To: Mort who wrote (38962)	2/5/2000 11:20:00 AM
From: Harry Sharp	Read Replies (1) of 45548

Mort, Whether the option strike price is adjusted downward to reflect the spin-off, or if the option holder also gets additional options on PALM, you agree that the COMS option holder will profit from PALM's anticipated success more or less the same? COMS stock price will rise to reflect PALM's rise. If the Call option holder actually wants the PALM shares he can exercise early to assure delivery of the PALM shares. Otherwise his readjusted strike price sans PALM will reflect the full benefit of PALM's appreciation. In other words the option holder won't get screwed overnight by the decision of the adjustment panel either way, it would always be a fair adjustment, correct?

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