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

To: Angela B. who wrote (37132)	12/15/1999 6:41:00 PM
From: Scott Heaton	Read Replies (3) \| Respond to of 45548

That has not been set yet, and it really does not matter what the ratio is. All that matters is that 80% of the shares will be distributed to the 3com holders. Scott

To: Angela B. who wrote (37132)	12/15/1999 6:56:00 PM
From: David Lawrence	Respond to of 45548

>>What will COM shareholders get at IPO time.' Nothing. Palm gets the proceeds of the IPO, some of which will be returned to 3Com. Sometime -after- the IPO, COMS will distribute their remaining shares in Palm to 3Com shareholders. They haven't announced how many or even what percent of the shares they will be selling at the IPO, much less what the distribution ratio will be when they spin off the rest of Palm. Past commentary has been in the 20%/80% range. If that is indeed the range, the 80% will be distributed to 3Com shareholders on a prorated basis, so the shares-issued per shares-owned is basically irrelevant for value purposes. If you own 1% of 3Com, you'll get 1% of 80%, or 0.8% of Palm.

To: Angela B. who wrote (37132)	12/15/1999 7:07:00 PM
From: David Lawrence	Read Replies (1) \| Respond to of 45548

I'll amend my previous comment. 3Com shareholders will receive something at the IPO - knowledge of what market capitalization investors will give Palm. The caveat is that the market cap will be established with a relative small float. Nonetheless, COMS price should respond to whatever that value is and will move with it for a while. It will be a volatile time, and there will probably be a large short interest as some 3Com shareholders will lock in profits by shorting as-yet-to-be-distributed Palm shares. The post-IPO float will be pretty thin as a lot of those shares will be restricted. Trading in options will be nothing short of a nightmare.