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Technology Stocks : Winstar Comm. (WCII)

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To: MARK JALBERT who wrote (11865)3/15/2000 1:27:00 PM
From: Robert L. Jacobs  Read Replies (1) of 12468
 
In a spin-off of Office.com, WCII shareholders could be distributed shares in Office based on their number of shares in WCII, or they could be given the option to exchange WCII shares for Office shares.
WCII could also choose to do a straight-forward IPO of Office to the public (in which case it is unlikely that WCII shareholders would have any special right to participate).
In any of these scenarios, WCII could retain some or a major portion of the Office shares, particularly if it felt there were some strategic benefit from an ongoing relationship with Office. By selling off, say, 20% of Office to the public, it is more likely that the established market price for Office would lead to the value of WCII's ongoing ownership of Office being reflected in the WCII stock price.
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