AT&T Message Board - Msg: 14892152

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Technology Stocks : AT&T

T 23.59

0.0%

Jan 23 9:30 AM EST

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To: 44magnumpower who wrote (3934)	11/27/2000 11:18:49 PM
From: Jody Ritchie	Read Replies (2) of 4298

Okay, I think I may understand this a little better now. Please correct me if I'm wrong as I'm new to T (don't own yet, new to researching). 15% of the AWE shares were IPO'd. The other 85% are still owned by T and will be distributed to T shareholders according to a yet-to-be-determined formula at a yet-to-be-determined date. Is this correct? My company recently went through the very same scenario. On 11/1/99, Agilent Technologies became a public company under the symbol A. At that time, 15% of the shares of A were traded on the street and 85% of the shares were owned by Hewlett-Packard (HWP). On 6/2/00, the A shares held by HWP were distributed to HWP shareholders in the form of a special dividend at the rate of .38 A shares for every HWP share you owned. On 6/2/00, HWP no longer had any stake in A. HWPs price was adjusted for this dividend before market open. The end result was that you held stocks in two companies, but your value was identical before trading started. Of course, once trading started, your valuations changed. Is this the same thing T will do with it's four companies, one of which (AWE) has already been made public? Jody

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