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Technology Stocks : Sequent -- Ignore unavailable to you. Want to Upgrade?

To: Rusty who wrote (1211)	6/29/1999 6:44:00 PM
From: Rob C.	Read Replies (1) \| Respond to of 1229

Rusty, I predicted this 3 or 4 months ago....see below for reasoning...great article... By Franklin Paul NEW YORK, June 29 (Reuters) - International Business Machines Corp.'s <IBM.N> strategy for its version of Unix, the high-powered business software system, would gain a needed boost if it purchases Sequent Computer Systems Inc.<SQNT.O>, analysts said on Tuesday. The Wall Street Journal, quoting a person familiar with the deal, said IBM was in the "advanced" stage of discussions to acquire Beaverton, Ore.-based Sequent, a supplier of technology that allows computers to be strung together to give them supercomputer-like performance. IBM and Sequent declined to comment. Nasdaq said Sequent also declined Nasdaq's request to comment publicly on its stock activity. Such an acquisition would help IBM with its stragegy for Unix servers, Merrill Lynch analyst Steve Milunovich said. Unix software, while long considered a reliable system for high-volume business activities such as retail order processing, has suffered due to the computer industry's unwillingness to agree on common standards. But the promise of the new generation of low-cost, high-power Merced chips, due to ship sometime in 2000, has enticed computer makers to refocus development efforts on software based on the Intel Corp. <INTC.O> chips. By running on Intel chips, Unix-based computers will be able to compete more effectively on price with Windows NT, Microsoft Corp.'s <MSFT.O> system, which relies solely on Intel chips to run powerful systems at low cost. "(IBM's) RS/6000 series doesn't scale well," Milunovich said, adding that "Sequent's NUMA architecture could be helpful." "IBM needs the technology...as it gets into the Merced timeframe," said Gary Helmig, analyst with Soundview Technology Group. He noted that Sequent's systems allow for dynamic partitioning of the resourcing between NT and Unix. Milunovich added that buying Sequent might also suggest IBM is focusing on high-end servers based on Microsoft's Windows operating systems and Intel's processors. "IBM does not have large Intel-based or NT-based systems other than clustering Netfinity PC servers," he said. "Hybrid servers running both Unix and NT may be popular in the future, and Sequent is strong here." Shares of IBM closed up $2.31 at $124.88. Sequent shares rose to $18.63 a share, its highest level in the past year, before closing at $17.56, up $3.56. REUTERS Rtr 17:51 06-29-99 Copyright 1999, Reuters News Service Copyright © 1997 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. or such other notice as may be agreed by the parties in writing.