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Technology Stocks : IDT *(idtc) following this new issue?* -- Ignore unavailable to you. Want to Upgrade?

To: blankmind who wrote (4425)	4/10/1999 10:32:00 AM
From: orkrious	Read Replies (3) \| Respond to of 30916

i have been thinking about this and now suspect shareholders of idt will get some shares. I cannot understand why there would be any doubt. This is going to be just like the AT&T Lucent deal, except that AT&T didn't retain an interest in LU. The difference here is that Jonas is going to end up with a good chunk of both companies. Since IDT owns Net2Phone, in a spinoff, every share of Net2Phone that is issued will: 1) Be issued to a current IDT shareholder 2) Be sold for cash to go into the coffers of IDT. Note IDT doesn't need the cash. My guess is that: 1) At the beginning, IDT will issue 23 million shares of Net2Phone and keep half for itself (11 million shares). 2) The other 12 million shares will go to current shareholders (including Jonas), who will get one share of Net2PhoneFor each 2 shares of IDTC they own. 3) Net2Phone will issue an additional 6 million shares to the public for cash to support its growth. This will give Net2Phone a 29 million share float and a market cap bigger than IDTC. IDTC's market cap shouldn't shrink too much from here anyway, since this is where IDTC was not too long ago without a contribution from Net2Phone. The end result is IDT keeps 38% of Net2Phone for itself, Jonas owns 38% of IDT, Jonas owns 25% of Net2Phone. Ee each own the same % of IDT that we used to and we also get half of the same number of shares of Net2Phone, only slightly diluted. FWIW Jay

To: blankmind who wrote (4425)	4/10/1999 11:20:00 AM
From: Lea Hwang Lee	Read Replies (3) \| Respond to of 30916

Hi Blankman, "both idtc and softbank want the price of idtc to rise, thus the softbank leak..." Another dumb question: why does softbank want idtc price to rise? Sincerely, Lea the novice investor

To: blankmind who wrote (4425)	4/10/1999 1:03:00 PM
From: Andrew H	Respond to of 30916

>>i have been thinking about this and now suspect shareholders of idt will get some shares. i do not believe because of the amount of shares jonas holds is the reason, but because of softbank and the current price of idtc << I did not mean to suggest that Jonas's share holdings was the only reason that shareholders would get a piece of the IPO--I think there are several reasons, among them the one you suggest. However, I certainly would not discount Jonas's position as a consideration. IDTC is, after all, Jonas's baby. Yes, the ratio is an interesting question, but I am sure you don't want to run another contest. (:>)