3Com May Consider Spinoffs, Restructuring, NetworkWorld Says
Santa Clara, California, March 14 (Bloomberg) -- 3Com Corp.
may spin off pieces of its Network Systems business unit and
restructure parts of the computer-networking equipment maker as it
seeks to keep shareholder value momentum going after it sold
shares in its Palm unit, NetworkWorld reported on its Web site.
Sales of Network System products, including switches, hubs, remote
access concentrators, routers and network management software,
fell 12 percent in the second quarter from the first quarter.
3Com's shares may decline when the rest of its Palm unit is
completely spun off, leaving the company with mostly low-growth,
low-margin, price-sensitive businesses, increasing the need to
reorganize, NetworkWorld said.
Shares of Palm Inc. have climbed more than 50 percent since
their initial public offering on March 1 as investors bet the
unit's hand-held organizers represent the future of computers,
though the stock has fallen to 57 3/4 from a high of 165, reached
on its first day of trading.
(NetworkWorldFusion 3/14)
For the Web site of NetworkWorld, type nwfusion.com
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