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

To: cfoe who wrote (44282)	8/2/2000 12:30:24 AM
From: Alski	Read Replies (1) \| Respond to of 45548

cfoe, I take this to mean one should use the relative closing prices on the 27th to make the apportionment. Surely you wouldn't suggest using the closing price of COMS on the 27th? That was 64 9/16 and still included PALM! So what was their relative fair market values on the July 27, 2000 distribution date? I suppose you could argue the ratio should be based on the 27th closes of COMSV and PALMV, but even those prices were before the spin off (by an hour). The next paragraphs say "fair market value of a share of COMS(PALM) common stock immediately after* the distribution...."* Well, I guess I don't know the fair market value of COMS at 5:01 on 7/27, to the penny, anyway. I don't really trust the prices of the "V" shares because of all the trading difficulty from brokers not knowing how to cope, so I like the 7/28 opens as the closest I can get, for now. Then, of course there's the last press release from COMS to refer to at 3com.com From that release: "Applying the calculation method outlined in that information statement and using the valuation of 3Com ex-dividend and Palm at the open of trading on July 28, shareholders may allocate 21.02% of pre-distribution tax basis to their 3Com shares and the remaining 78.98% to their Palm shares (including any fractional interest). Shareholders should consult their tax advisors regarding the application of this calculation to their particular circumstances." It'll all be mute soon anyway. Skip ahead to the bottom of the next page Tax Return Statement. There's where the rubber really meats the road. "...we will provide you the information necessary to comply with that requirement." Doing anything other than set forth in the statement we're all about to get would be asking for trouble from the IRS. FWIW...Alski