3Com Corporation (COMS) Message Board

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Technology Stocks : 3Com Corporation (COMS)

COMS 0.00150

-28.6%

Dec 11 9:30 AM EST

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To: Martin Milani who wrote (25260)	11/27/1998 10:12:00 AM
From: Steve Porter	Read Replies (1) of 45548

Martin, While COMS is attractive (provided you are big enough) as a takeover target, there are some things that a large company like LU might not want to get stuck in, namely the "commodity" market places that COMS plays in. This is a big negative in terms of how any buyout of COMS would be perceived in the market place. I mean just look at how the analysts fret over it now. COMS I think would rather partner with a large firm. Many of the big companies you mentioned are very capable of quickly transitioning their product line to data pipes (vs. PBX style pipes) when/if they partner with a company such as COMS. This partnership has 2 major benefits over buying a company: 1) it's a hell of a lot cheaper 2) no anti-trust/shareholder/employee reduction/etc. style problems. While you see mergers as the solution, I really see partnerships and target market switches as the way to survive in the future. The benefit of partnerships should be obvious. If the partnership is well thought out and well drawn up, both parties win, almost for free. Steve

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