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To: Cooters who wrote (92551)1/25/2001 5:21:02 PM
From: David E. Taylor  Read Replies (1) | Respond to of 152472
 
Cooters:

Spinning off 10% via an IPO would raise significant cash for the new Spinco to start life as an independent entity. When 3Com spun off PALM, the IPO of just 6% of the shares gave PALM a war chest of over $1 billion in cash to start life. Without an IPO, QCOM has to capitalize Spinco itself, or Spinco has to borrow to get cash to start business.

David T.