3Com Corp. (Nasdaq: COMS) said Friday that the final Palm (Nasdaq: PALM) distribution ratio is 1.484 shares of Palm for each share of 3Com.
The stocks of parent and spin-off diverged in May, as 3Com took the high road, while spin-off Palm took the low road after 3Com announced it would repurchase up to $1 billion worth of stock, and complete its spin-off of the company earlier than expected.
3Com shares were up 1 3/4 to 66 1/16 and Palm rose 1 3/8 to 37 15/16 on the news.
The company said the distribution completes its commitment to create two independent leadership companies, and it has reached this milestone earlier than originally anticipated, while generating shareholder value in the process.
The final ratio was calculated by taking the total number of Palm shares owned by 3Com and dividing it by the number of shares of 3Com common stock outstanding on the record date, July 11, 2000.
3Com owns 532 million shares of Palm and as of July 11 there were 358.5 million shares of 3Com common stock outstanding. The Palm shares will be distributed to 3Com shareholders July 27, 2000.
3Com's strategic focus has been sharpened, and its potential to create further shareholder value enhanced through this transformation. 3Com also reaffirmed its stock buyback plan of up to one billion dollars.
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