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Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: coopie who wrote (47134)	10/30/1999 6:33:00 PM
From: JEFF K	Respond to of 50808

Good evening, without seeing the actual legal document delineating this transaction, its impossible to give a tax opinion. That being said, from my experience transactions in which companies divest or spin off divisions usually create a basis allocation (of the resulting parts) to the shareholders and, the shareholders realize a taxable profit or loss when they sell the resulting shares of the individual parts. As implied in Cubes' press release c-cube.com " In addition, the C-Cube shareholders will receive spun off shares of the semiconductor business or net, after-tax proceeds of any sale of the semiconductor business."