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Technology Stocks : 3Com Corporation (COMS)
COMS 0.001300.0%Nov 7 11:47 AM EST

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To: richard w allgaier who wrote (43266)5/16/2000 12:47:00 PM
From: Andre Williamson  Read Replies (1) of 45548
 
Rick, see the recent post by Jonathan (#43259). Also, there has been an extensive analysis of this angle posted on this thread a few times within the last 3-4 months. It was quite detailed. I can't remember the post, though. Maybe someone else can post it one more time.

The bottom line conclusion, as I understood it, was that neither company can be acquired for 2 years following an acquisition (or spinoff), otherwise it is a taxable event. That's why COMS took over two years to spin off Palm and presumably it's also why both companies should be expected to remain independent for the short haul.

In other words, neither COMS nor PALM would be acquisition targets for a couple of years.

Others, please feel free to elaborate.

Andre
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