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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: The Phoenix who wrote (33316)	8/26/1999 9:59:00 PM
From: Tim McGee	Read Replies (1) \| Respond to of 45548

The validity EPS of COMS is not the issue it is the disparity in the valuation between the two companies that presents the great opportunity for a transaction. If LU can pick up COMS earnings and still get the same premium for their stock, they win big time. Look at the math: LU buys COMS and gets .13c (using last years actual numbers) per share earnings added to its bottom line. This is worth about $8 per share to LU at its current multiple (64x) or $25B in market cap. If they pay 12-15B for this market cap, then its a huge win for them. This is just one reason for them to do this. Not THE reason. Given these numbers, I think LU is in the best position to offer the most $$ for COMS. I also think they have good mgmt and could get a lot more out of COMS assets than current mgmt. Tim