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Technology Stocks : BAY Ntwks (under House)

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To: Hiram Walker who wrote (5519)4/26/1998 12:33:00 PM
From: A. Fineigler  Read Replies (1) of 6980
 
Rumor, FWIW.

A buddy who works in the comms field on the E. Coast mentioned a rumor yesterday that Compaq is eyeing up Bay for acquisition. The story goes that DEC's networking division was too weak, with no possibility of ever being the number 1 or number 2 player, so CPQ blessed its sale to Cabletron after the DEC deal was announced. Compaq rumored to be looking at Bay as a possible buyout in order to beef up their presence in the networking field. At current prices, it would be an opportune time for CPQ to make such a move.

I generally don't pass on rumors (hear them all the time), but this one seems to be less random and make more sense than most. Has anyone else out there heard anything about a possible CPQ buyout of BAY ?

AF
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