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

To: Mang Cheng who wrote (39323)	2/15/2000 10:25:00 AM
From: Alski	Read Replies (1) \| Respond to of 45548

Mang, I'm not so sure there will be new PALM options. The "committee" would have the same problem you're having figuring out the adjusted strikes. I suspect your 2001 Jan $70 calls will remain just that. Strike will stay the same but each contract will be for 100 shares COMS PLUS 150 (or whatever) shares of PALM. Exercise and you get both. Want one but not the other - tough, that's not what you bought. When the contract was originally bought it was for the combined COMS and PALM businesses, and that's what I think it will remain. If the committee does choose to split out PALM options, then I think they would have to use the same formula COMS has to publish on how to allocate your original basis between your COMS and PALM holdings. They have to publish this formula for COMS holders, probably based on the resulting book values of the two companies and little or nothing to do with market caps or share prices. I don't think there's any way to guess what it will be, one would have to know which assets go where and what part of the book value each represents. Just have to wait 'till they publish it. FWIW&IMHO...Alski