3Com, Palm Surge on Finalization of Stock Distribution Ratio

The distribution ratio is 1.484 shares of Palm for each share of 3Com.
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Updated from 3:23 p.m. EDT

3Com

(COMS)

, the second-largest maker of computer networking products, said Friday that it has set a final distribution ratio for its

Palm

(PALM)

spinoff of 1.484 shares of Palm for each share of 3Com.

3Com finished up 9 5/16, or 14.5%, at 73 5/8, while Palm closed up 6 1/6, or 17%, at 42 5/8.

Santa Clara, Calif.-based 3Com calculated the figure by taking the total number of Palm shares it owned as of July 11 and dividing that figure by the number of shares of 3Com common stock outstanding on that day. On July 11, 3Com owned 532 million shares of Palm and there were 358.5 million shares of 3Com stock outstanding.

The Palm shares will be distributed to 3Com shareholders of record as of 5:00 p.m. EDT on July 27.

"The distribution of Palm completes the commitment we made last September to create two independent leadership companies in the field of handheld computing and networking," said Eric Benhamou, chairman and chief executive of 3Com and chairman of Palm, in a statement.

Palm, which makes the popular Palm electronic organizer, went

public on March 2, rising 150% in its first day of trading.