U.S. Robotics-3Com merger seen sparking networkers
NEW YORK, Feb 26 (Reuter) - Shares in several networking companies rose in after-hours activity on Wednesday after news of a proposed $6.6 billion stock merger between 3Com Corp and U.S. Robotics Corp ( US Robotics Corp ).
The announcement provided the first real spark in some time for the recently downtrodden group.
According to Instinet, several networking shares were higher in after-hours activity. Cascade Communications Corp traded at 33, up from a regular-session closing price of 32-5/8, and Cisco Systems Inc rose to 58-1/2 from a close of 58-1/8.
Shares in 3Com and U.S. Robotics were both sharply higher in after-hours activity prior to Nasdaq-imposed trading halts.
Scott Bleier, chief investment strategist at Prime Charter Ltd, said the deal could revitalize interest in the group, which has met with stiff selling pressure in the wake of earnings and sales warnings by several companies recently.
"This should heat up the networking sector," Bleier said. "This is a mega-merger, and you can probably expect other big companies like Cisco and Ascend Communications Inc are going to be on the prowl."
((-- Wall Street desk, 212-859-1730)) |
