Cabletron Systems (CS: NYSE) Message Board

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Technology Stocks : Cabletron Systems (CS: NYSE)

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To: B.G. Galbraith who wrote (2568)	12/5/1997 4:08:00 PM
From: Doug	Read Replies (1) of 8358

Hi BG: This afternoon there was some short covering indicating that very fear. At $35+ the premiun is not much in terms of Sales. Their traditional bedfellow has been Nortel a major telco supplier with a decent balance sheet. My experience has been that one needs a strong CEO & CFO and an equally determined project team to handle an acquistion. Too often the consolidation phase is bungled because of personality clashes leading to cost overuns & missed schedules. I have no scorecard on how well CS or Mr Reed has handled an acquisition. We may have to wait for the DEC playout. The DEC culture <nicer than inertia> has a long tradition of its own and I am not sure they can be absorbed that easily. Newbridge ran into similar problems with its latest acquistion leading to more write-offs. In conclusion, I do not think more acquisitions will solve the immediate problems.!

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