3Com has no comment on report breakup plan imminent
NEW YORK, March 16 (Reuters) - 3Com Corp. <COMS.O>,
which has been mulling further spinoffs in the wake of
its recent Palm Inc. <PALM.O> initial public offering,
declined comment on Thursday on a report it may announce a
breakup of the company.
"It's our long-standing position not to comment on rumors
and speculation," a company spokesman said.
A report in the Wall Street Journal said 3Com plans major
announcements in New York on Monday and cited "outsiders"
as saying they believed 3Com will spin off or sell its
corporate network products unit and perhaps some additional
units. The item appeared in a weekly technology gossip column.
While declining to comment, the spokesman confirmed 3Com is
holding a meeting with Wall Street analysts in New York
Monday afternoon.
Shares of 3Com opened slightly lower on the Nasdaq stock
market on Thursday, declining 1/4 of a point to 60-13/16,
then trading as low as 59.
The split-up of 3Com would come in the face of stiff
competition from top network industry player Cisco Systems
Inc. <CSCO.O> and would parallel similar plans announced by
rivals Cabletron Systems Inc. <CS.N> and Lucent Technologies
Inc. <LU.N>.
3Com operates three principal businesses in the wake of its
Palm spinout: carrier networks, serving telecommunications
service providers; enterprise networks, for the corporate
market; and "personal connectivity" products, which include
modems, home network gear, and other equipment sold at retail.
((-- Eric Auchard, New York newsdesk, 212-859-1756))
REUTERS
Rtr 12:37 03-16-00
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