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

To: Souze who wrote (38919)	2/4/2000 12:27:00 PM
From: Kevin Podsiadlik	Read Replies (2) \| Respond to of 45548

Well that's very interesting. I hadn't realized it would be a complete divestiture, that makes a big difference. 532 million PALM shares held by COMS divided by 342.3 million shares of COMS outstanding comes to a ratio of about 1.55 PALM shares for every COMS share. That sounds good. Only thing I'll add is that the 10% arbitrage figure still seems too low, given the high probability that PALM will not maintain its opening day price. Tentatively I'd start by valuing PALM based on its IPO price (if $16, that would come to about $24 7/8 per COMS share) regardless of where it trades the first day, and close the gap from there.