Thread, coms bot USRX on a stk swap.. 1.75 shares of coms for a share of usrx...
so why in this merger is coms taking a restructure charge<gggg>
3Com To Take $325Mil-Plus Charge For US Robotics Buy 08/29/97
Newsbytes, Friday, August 29, 1997 at 15:46
WASHINGTON, DC, U.S.A., 1997 AUG 29 (NB) -- REPEAT/By Bob Woods.
Networking concern 3Com [NASDAQ:COMS] said it will take a charge of
between $325 million and $375 million in its first quarter as a result
of its buyout of US Robotics - a merger that was completed last June.
In its 10-K filing with the US Securities and Exchange Commission
(SEC) obtained by Newsbytes, 3Com said that it "anticipates that as
a result of the merger, the combined company will incur restructuring
charges and direct transaction costs relating to the business
combination, estimated to be between $325 million and $375 million.
These non-recurring costs will be charged to operations in the first
quarter of fiscal 1998."
3Com said this of the merger in general: "Combining 3Com's capabilities
and leadership position in the enterprise and local area networking
market with US Robotics' capabilities and leadership position in remote
access and modem markets creates a networking company with the ability
to deliver integrated end-to-end LAN (local area network) and WAN (wide
area network) solutions to the broadest set of customers in the
industry."
Company officials also said in the filing that fiscal 1997 sales were
up 35 percent to $3.1 billion from fiscal 1996.
In the wake of the merger, 3Com officials confirmed to Newsbytes last
month that as a result of the merger, they plan to cut a total of about
800 jobs, with most of the pink slips coming in the executive and full-
time ranks (Newsbytes, Jul. 7, 1997).
The layoffs, which will affect 3Com's operations worldwide, will take
place over the next fiscal year, which started last June, 3Com
spokesperson Sara Powers told Newsbytes at the time. Six hundred of
the 800 layoffs will affect execs and full-timers, she said, while the
other 200 will hit the company's temporary work force.
Powers noted that 3Com and US Robotics do not have a lot of overlap
in the respective products and services they produced, so the numbers
of layoffs are small. The combined 3Com/US Robotics employs about 13,500
people worldwide, she added. |
