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3Com up on Palm unit IPO
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December 14, 1999: 12:16 p.m. ET
Networking firm stock rises 8 percent; Palm gets Motorola backing
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NEW YORK (CNNfn) - Shares of 3Com Corp. jumped 8 percent in Tuesday morning trading after the networking firm said it would take its Palm Computing Inc. unit public.
After Monday’s markets closed, 3Com (COMS) disclosed in a Securities and Exchange Commission filing that it expects to raise as much as $100 million in Palm’s initial public offering of stock.
Shortly after 11 a.m. ET, 3Com shares rose 3-9/16 to 48-3/8.
Palm, which develops the popular PalmPilot series of palm-sized computers, is expected to trade on the Nasdaq stock market under the symbol PALM.
The unit also garnered financial backing from technology heavyweight Motorola Inc. (MOT), which signed a preliminary agreement Tuesday to license the Palm operating system for use in Motorola products.
Motorola, a leading maker of cellular phones, will also take an equity stake in Palm.
"We see a whole new category of wireless devices emerging that combine popular PDA [personal digital assistant] platforms with wireless communications," said Merle Gilmore, president of Motorola's communications enterprise. "By combining the widespread appeal of the Palm operating system with the exploding demand for wireless communications, we will be able to provide people with the personal networking capabilities they want and need."
Motorola shares slipped 2-5/8 to 125-15/16.
According to 3Com’s SEC filing, America Online Inc. (AOL) and Nokia Corp. (NOK) have agreed to purchase up to 4.5 percent of Palm stock through private placements. 
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