FORE, A Takeover Target
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Bloomberg News
November 18, 1998, 2:28 p.m. PT
Fore Rises on Speculation It May Be Takeover Target (Update1)
(Adds details on Intel in 6th paragraph; updates with
closing stock activity.)
Warrendale, Pennsylvania, Nov. 18 (Bloomberg) -- Fore
Systems Inc. shares rose 25 percent amid speculation that the
computer-networking company may be acquired by a larger maker of
networking or telecommunications equipment.
Fore rose 3 3/8 to 16 13/16 in trading of 8.74 million
shares, more than triple the three-month daily average.
Fore makes so-called asynchronous transfer mode, or ATM,
computer switches used to handle voice and data communications on
data networks. Large telephone-equipment makers are looking to
acquire ATM gear as they push into the market for Internet gear.
''They (Fore) are still a takeover target,'' said Farrokh
Billimoria, an analyst at Hambrecht & Quist, who rates Fore
''hold.''
Analysts have speculated that Lucent Technologies Inc.,
North America's top phone-equipment maker, and large European
equipment-makers such as Ericcson AB may be interested in Fore.
Intel Chief Executive Craig Barrett earlier this week said
his company is looking to buy more computer-networking companies.
Fore now has a distribution agreement to sell Intel's low-cost
computer switches.
Fore, based in Warrendale, Pennsylvania, declined to
comment, citing company policy. |
