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

To: kcmike who wrote (39309)2/14/2000 8:46:00 PM
From: Mark Iguchi  Read Replies (1) | Respond to of 45548
 
As it stands right now, over 40% of COMS shares are held by institutions. With 23 million in PALM's float, I suspect institutions that want to be "in" PALM will end up purchasing 3Com between now and distribution date. Institutional holdings will lessen the impact, I think...

I'm sure insiders would also be subject to some sort of a unwritten "lock-up": (How good would it look if Carl or Eric dumped all their shares on distribution date?). In addition, PALM will have to keep some shares within their treasury for their employee's stock purchase and stock option plans.

Of course there will be me, with my 5 shares of PALM :) that won't be part of the selling that day. I would imagine that the anticipation for distribution date (starting a couple weeks beforehand) will itself bring the price of PALM/COMS to equillibrium...

Holding my COMS/PALM>..

Mark



To: kcmike who wrote (39309)2/14/2000 10:51:00 PM
From: David E. Taylor  Respond to of 45548
 
Mike:

There will be no lockup on the 532 million shares distributed to COMS shareholders. The S-1A (p.24) states that "substantially all of these shares will be eligible for immediate resale in the public market." It goes on to say that PALM cannot predict the effect of this on the market price of PALM.

There's a 180 day lock up on the 15 million being taken by AOL/NOK/MOT, but that will expire at about the same time as we get our shares.

David T.


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