European company dresses up for the party:
SIEMENS UNISPHERE: Public offering considered
Parent company Siemens favours a Unisphere taking a cautious approach to Wall Street,
writes Richard Waters in New York
The US networking equipment
company set up earlier this year
by Siemens is considering an
initial public offering, although its
German parent appears to have
stopped it from joining the IPO
rush in the sector.
Unisphere Solutions was created
in March to help the German electronics group bridge the
technological and cultural gulf between fast-growing US
network equipment companies and traditional European
telecommunications equipment makers.
More than just an attempt to catch up with American
technology, the new venture was seen as a way for
Siemens to learn from the more flexible US business
methods that have made rivals such as Cisco Systems
dominant in the new business of building the
infrastructure behind the internet.
Since Unisphere's launch in March, networking
equipment companies have been among the hottest new
arrivals on Wall Street.
Juniper Networks, a manufacturer of high-speed routers
and a direct Unisphere competitor, has seen its stock
jump to $193 from $34 at its IPO in June, valuing the
company at nearly $10bn.
Unisphere has been looking at the possibility of a US
stock market listing, said Martin Clague, the former IBM
executive who was hired to run the company.
Mr Clague added that he had held discussions with
investment bankers about the idea and suggested that a
decision might be made within "three or four months".
However, the slower, more cautious approach of
Unisphere's German parent appears to have put a brake
on the company's plans.
"This is very fast for them," Mr Clague said of Siemens.
He compared the German company's attempt to
transform itself to similar efforts by IBM, which had to
remake its culture after allowing itself to be by- passed
by the Personal Computer revolution.
Siemens is considering its own US stock market listing
in 2001, though Mr Clague denied that this had
complicated the decision about whether to mount a
Unisphere IPO.
The chance of reaping big profits from stock options has
become one of the big draws for people who work in
small, fast-growing technology or telecommunications
companies in the US. Unisphere is founded on four small
technology companies acquired in the US in recent
months.
"Do I want the employees to make money? Certainly I
do," said Mr Clague, who added that his 600 workers
would welcome an IPO.
A stock market listing has also become vital for any
company looking to make acquisitions in the networking
sector, since valuations have risen to a level that has
become prohibitive for companies that cannot do
stock-for-stock deals.
"There are a number of small US companies that we
have on our radar screen [as potential acquisitions],"
said Mr Clague. He added, though, that the company did
not expect to make many acquisitions, but would
instead look to alliances and partnerships with other
technology companies. |
