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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: Anonymous who wrote (15973)	9/9/2000 9:16:07 AM
From: Georgeb	Read Replies (1) \| Respond to of 21876

Anon, As a veteran of other ATT spinoffs, perhaps you can explain what the press release meant. "The 12:1 spinoff shares for Avaya" announcement doesnt give a stock price. Could it be assumed that Avaya starts at the Lucent share price (about $40/share)? This would mean that Avaya was valued at $3.33 per share on a share for share basis. This is a little less than I expected using 1999 operating income as a guide. This is probably a good thing since I was afraid that they might overprice it artificially (only to have the market hammer the stock by dumping it on the first day). Would we see a comensurate drop in LU of $3.33 then the first day, or is that just a theoretical change that disappears in the noise?