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Technology Stocks : 3Com Corporation (COMS)
COMS 0.00130-67.5%Nov 7 11:47 AM EST

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To: Andre Williamson who wrote (43312)5/22/2000 10:13:00 AM
From: Allen Furlan  Read Replies (1) of 45548
 
Andre, re option adjustments. I am just cynical and have not spent the time to dig into this. Kind of hoped some close 3Com watchers had already done this.
But the article also said "if 3Coms share price falls by 50% on July 28, 3Com employees will get twice as many options as they currently own, at half their current strike price"
Got me wondering if 3Com falls by 75% will insiders get 4 times the number of options at 1/4 the strike price, i.e. is this adjustment proportional?
In any case when management structures an IPO that is more advantageous to insiders than the new IPO( that is what they did in my opinion), then I have a reason to be cynical.
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