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Technology Stocks : Frank Coluccio Technology Forum - ASAP -- Ignore unavailable to you. Want to Upgrade?

To: Frank A. Coluccio who wrote (510)	11/28/1999 8:46:00 PM
From: mthomas	Respond to of 1782

That is indeed a great question......I simply assumed T would be getting money to play with one way or another, but I had not taken the time to analyze what the restrictions might be, or to what end that money might be used.....Martin Thomas <What structural separations and/or stipulations exist, either in SEC regulations or in the bylaws of T's charter, to preclude T from using proceeds from a wireless tracking stock IPO from being used for the much greater needed improvements, arguably, in their cable holdings?>

To: Frank A. Coluccio who wrote (510)	11/28/1999 10:48:00 PM
From: ftth	Read Replies (1) \| Respond to of 1782

Hi Frank, I'm certainly not the last word on regulatory matters, but I do believe they can do such a thing as long as it is disclosed in the "use of proceeds" section of the prospectus. I believe there have been cases of spinoffs turning some or all the proceeds from the offering back to the parent. If T did in fact disclose that a portion of the proceeds would go toward funding their cable infrastructure buildout, it would be a big turn-off for the wireless investors (at least, it would have been in days gone by; these days...who knows). Sorry, no links to support this claim so if someone knows better please chime in. dh