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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 168.060.0%3:59 PM EST

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To: Kayaker who wrote (88255)11/26/2000 6:11:23 PM
From: Don Lloyd  Read Replies (1) of 152472
 
Kayaker -

Anyone know if the details of the Spinco spin-off have been finalized? If I have 1000 shares of QCOM at a price of 120 the day before the spin-off, what will I have once the spin-off takes effect?...

The day before the spinoff you have a proportional ownership of QCOM of about 1000/750M including 100% of the spinoff. The next day you will still have the same proportional ownership of QCOM including about 90% of the spinoff and separately the same proportional ownership of about 10% of the spinoff. The number of shares issued for the spinoff will not affect this. Also, there is no reason that the total value of your holdings should change from one day to the next as the spinoff becomes effective, although the market can decide to value the same assets differently if it so chooses.

Regards, Don
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