3Com CEO Says Co. Has Not Been
Approached By Suitors
By Mark Boslet
PALO ALTO, Calif., (Dow Jones)--3Com Corp. (COMS) Chief
Executive Eric Benhamou said the networking equipment company
has not been approached by potential acquirers.
In the wake of Northern Telecom Ltd. (NT) proposed purchase of
Bay Networks Inc. (BAY), rumors have swirled in networking circles
that 3Com might be next.
But the reason suitors haven't come knocking are easy to
understand, Benhamou told Dow Jones. Telecommunications
equipment companies are primarily looking for data networking gear
appropriate for use in wide area networks, such as the ones phone
companies operate.
3Com doesn't sell equipment into the core, or backbones, of these
large networks, so it doesn't have the one key product these
purchasers are seeking. Instead, the Santa Clara, Calif., company
has a complementary product line that reaches to the outer edges
of networks, he said.
That puts it in a better position to partner with these
telecommunications equipment suppliers, he said.
Separately, 3Com will begin shipping its CoreBuilder 9000, a
powerful layer 3 Ethernet switch with gigabit-speed technology, in
the first quarter, Benhamou said.
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