From the yahoo thread:
>>Tuesday, November 10, 1998
By Bryce G. Hoffman
Business Writer
FREMONT -- The doors are locked, the lobby is dark and the Web site is
down, but SyQuest Technology Inc. has yet to make a formal concession of defeat.
In fact, the company has not said anything at all since it issued a terse press release Nov. 2 announcing that it was suspending operations and asking Nasdaq to halt trading of its stock. And, in the absence of any formal declarations, rumors of a takeover offer, perhaps from longtime rival Iomega, abound.
Headquartered here with operations worldwide, SyQuest was once one of the major manufacturers of removable data storage devices and one of Fremont's largest employers.
On Monday, however, only a couple of dozen cars remained in the parking lot.
Though SyQuest executives have not returned telephone calls, employees of the failing high-tech firm say the company laid off most of its staff Friday -- after announcing it could not make its payroll. According to employees, the company also failed to pay their health insurance premiums after Oct. 31.
With products like the SparQ line of removable hard disk drives, SyQuest tried to battle competitor Iomega for dominance in a marketplace characterized by low margins and technical difficulties. It was a no-holds-barred fight that featured patent lawsuits and countersuits. Investors also sued SyQuest, accusing former executives of engaging in insider trading.
But the company kept losing battles, reporting losses of more than $200 million since 1995. In August, following a disappointing third quarter, SyQuest fired 950 employees -- half its worldwide work force -- and shut down manufacturing operations in Fremont.
Analysts say the move sounded the death knell for the company, but SyQuest kept going, buoyed at times by rumors of pending mergers or takeovers. And, while SyQuest's stock is frozen and the doors are locked, those rumors continue.
Employees said representatives from Iomega held meetings last week with SyQuest senior executives, fueling new rumors of a takeover. Additional meetings with another firm were reported Sunday, but no deal has yet been announced. Employees who said they were briefed on last week's meetings said any such deal would likely require the company to file for Chapter 11 bankruptcy.
Iomega did not respond to telephone inquiries Monday.<<
Philip |
