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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?


To: Don Lloyd who wrote (88257)11/26/2000 6:34:36 PM
From: Kayaker  Read Replies (2) | Respond to of 152472
 
The next day you will still have the same proportional ownership of QCOM including about 90% of the spinoff and separately the same proportional ownership of about 10% of the spinoff.

Don, thanks for the note. So after the spin-off, I would have a certain number of Spinco shares. Any idea what is most likely to happen with the QCOM shares? In my example, 1000 shares of QCOM at 120 before the spinoff would become 900 shares at 120? Or would I still have 1000 shares at a price of 108? (120 less 10%).

The reason I ask is that I have a Canadian tax free retirement account (RRSP) that is allowed 25% (soon to be 30%) foreign content based on the book value of the shares. Hopefully this won't adjust the book value up.