Deal closed, could this be the last post!
Nortel (Northern Telecom) and Bay Networks AnnounceCompletion of Nortel/Bay Networks Merger
TORONTO and SANTA CLARA, CA, Aug. 31 /PRNewswire/ - Nortel (Northern Telecom) (NYSE: NT / TSE: NTL) and Bay Networks (NYSE: BAY) today announced the completion of the merger through which Nortel acquired Bay Networks. The merger, which was effective today, follows the approval by the stockholders of Bay Networks at a special meeting of stockholders held on August 28, 1998.
As a result of the merger, each outstanding share of Bay Networks common stock was converted into a right to receive 0.60 of a Nortel common share and Bay Networks became a wholly-owned subsidiary of Nortel. Bay Networks common stock will no longer trade on the New York Stock Exchange. Nortel issued approximately 135 million common shares in connection with the merger.
We have successfully completed the merger with Bay Networks at an accelerated pace - in Internet time,'' said John Roth, vice-chairman and chief executive officer of Nortel. ''And now that the merger is complete, our global strategy to deliver an unparalleled breadth of network technologies has also been accelerated. We are totally focused on working with our customers to launch and lead a new era of networking.''
Dave House, president and a member of the Office of the CEO of Nortel, and president of Bay Networks, said, ''The combination with Nortel will enable Bay Networks to build upon its past achievements and continue to lead the data networking industry with new products and technologies, while the addition of Nortel's tremendous worldwide resources will allow us to serve our customers even better than before.''
Bay Networks stockholders who held their shares directly will receive a notice in the mail describing the process to exchange their Bay Networks common stock certificates for Nortel common share certificates. Bay Networks stockholders whose shares were held through intermediaries such as banks or brokers will receive information about their holdings from those institutions.
Nortel works with customers in more than 150 countries and territories to design, build and integrate their communications products and advanced digital networks. Customers include public and private institutions; Internet service providers; local, long-distance, cellular mobile and PCS communications companies; cable television companies; and utilities. Nortel's common shares are listed on the New York, Toronto, Montreal, Vancouver and London stock exchanges. Nortel had 1997 revenues of US$15.5 billion and as of July 1998 had approximately 73,000 employees worldwide.
Bay Networks, a Nortel subsidiary, is a leader in the worldwide networking market, providing a complete line of products that serve corporate enterprises, service providers and telecommunications carriers. The company offers Ethernet and ATM LAN switches, routers, shared media, remote and Internet access solutions, IP services and network management applications, all integrated by Bay Networks' Adaptive Networking strategy. Bay Networks markets its products and services around the world, providing 7x24 support coverage.
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