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: James Binder who wrote (39839)	2/24/2000 5:59:00 PM
From: Mark Iguchi	Read Replies (1) of 45548

On the other hand, it is in the Investment Banker's interest to try and "maximize" a reasonable public offering price--how bad would it look if you, the investment bank, priced the offering way too low? The company would miss out on millions of dollars--and would reconsider who they did business with in the future (for secondary offerings, floating bond issues, mergers/acquisitions--all of which could bring in manyfold in revenue than the IPO for the IB). So the IB has the task of trying to price the issue "just right" to make both the company and their IPO clients happy. There was a very good story in the Washington Post a while back, tracking the whole process of the AETH IPO--very interesting reading if anyone wants to take a look at it. By the way, it is also illegal for any investment bank or brokerage firm to keep IPO shares for themselves or the benefit of the company. And finally, I guess it's safe to say that way back in October at the shareholder's meeting, when Eric B. promised to increase shareholder value...I'd say he did quite a good job. Five days to go...good luck everyone. Mark

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