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

To: Mang Cheng who wrote (36467)	11/21/1999 1:07:00 PM
From: KyrosL	Respond to of 45548

Mang, I don't think that the shares that COMS is buying in the open market (roughly 40 million in the last year) will participate in the Palm share distribution. Only COMS outstanding shares will participate. The shares that COMS buys back are added to its treasury and can be used to offset shares issued during the exercise of options, or when employees buy stock in the company at a discount. That's my understanding, but I may be wrong. I am pretty sure that the cash from the IPO (probably a billion or so) will stay with Palm. 3Com certainly does not need it with $3 billion of cash and investments in the bank and growing, and Palm has some pretty heavy expenditures next year such as: - Introduction of color Palms - Adaptation of Palm OS to mobile telephones and ability to run on diverse hardware base (such as Symbian's epoch and the ARM micro) - Introduction of Palms with different wireless air interface standards such as CDMA and GSM (Palm VII is TDMA). But the most important use of this money will probably be in the agressive expansion of the palm.net wireless service in a bid to become the AOL of wireless internet service.