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

To: Allen Furlan who wrote (39821)	2/24/2000 3:28:00 PM
From: David E. Taylor	Read Replies (1) \| Respond to of 45548

Allen: COMS doesn't get much cash from this IPO as it now stands. PALM gets all the proceeds, less underwriting costs, less $58 million they owe COMS on the books, and less a dividend payment of $50 million to COMS. PALM gets the rest of the cash from the sale of the 48 million shares (51.45 million if they take the over allotment). The only way COMS will get a bigger infusion of cash is if the IPO is re-priced -- a likely event in my view. In that case, COMS can elect to take 50% of the excess over $620 million, and PALM gets the rest. Right now with $15 pricing, the net amount realized will only be about $546 million. David T.