3Com files for Palm IPO

3Com has filed a registration statement with the US Securities and Exchange Commission for an IPO (initial public offering) of less than 20 percent of its subsidiary, Palm Computing.

The name of Palm Computing, which makes popular handheld organisers, will also be changed to Palm, 3Com said in a statement issued yesterday.

America Online, Nokia and Motorola have also agreed to purchase up to 4.5 percent of Palm's total stock, up to an investment of $US225 million, according to the S-1 statement filed with the SEC. The three will pay the IPO price for their shares.

AOL will invest $80 million or purchase 1.5 percent of Palm, whichever is the lesser. Motorola will invest $65 million or purchase 1.5 percent of Palm, while Nokia will buy the lesser of $80 million or 1.5 percent of Palm stock, according to the registration statement.

Investors in Europe responded favorably to the news, sending 3Com shares on the Frankfurt exchange up 11.36 percent to 49 euros at midday, up from the previous close of 44 euros yesterday.

Goldman, Sachs & Co. and Morgan Stanley Dean Witter are the lead managers of the IPO, 3Com said.

The document may be reviewed online.

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