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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 (43319)5/22/2000 12:08:00 PM
From: Robohogs   of 45548
 
The adjustment will be that the option price would halve and the number of options would double - the reason being that COMS is keeping people whole after the divestiture. So, someone who has options on 1 million shares at $40 would have 2 million shares at $20 ($40 million notional in each case). The increase won't be that dilutive as the options at $40 vs. $40 stock would become $20 vs $20 stock. The twice the quantity does hurt but is offset somewhat by the fact that PALM employees will get PALM options and not COMS options.
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