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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 171.54+0.4%3:59 PM EST

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To: Art Bechhoefer who wrote (13262)7/26/2001 6:47:55 AM
From: Labrador  Read Replies (1) of 196577
 
>>A second but equally important reason is that the spin-off would be priced at some percentage of QUALCOMM, based on the proportion of asset value. That price in today's market would be very low, in essence, giving away the store.<<

But why is that the case? Since the IPO was cancelled, the approach that was to be taken was a mere spin of the chipco to the shareholders -- no public sale of the company. Accordingly, only QCOM shareholders would own chipco. The 'give-away' wouldn't exist since the intrinsic value would all go to the current shareholders.
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