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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: DownSouth who wrote (27314)	8/10/1999 9:06:00 AM
From: Vendit™	Respond to of 77400

CSCO up in pre-open: INS shares (INSS: news, msgs) climbed 3 9/16 to 51 over the Island ECN. Based on Lucent's (LU: news, msgs) closing stock price Monday, the merger would be valued at approximately $3.7 billion, or roughly $54 for each INS share. Lucent shares fell 1 3/8 to 62 1/4 in Instinet trading. Cisco Systems (CSCO: news, msgs), which owns a minority stake in INS, inched up 1/4 to 60 1/16 over Island. cbs.marketwatch.com

To: DownSouth who wrote (27314)	8/10/1999 8:26:00 PM
From: Zoltan!	Respond to of 77400

Re: INS During the conference call, Cisco Chief Executive Chambers said Cisco several times turned down the opportunity to acquire International Network Services (INSS) -- a company that, despite close ties with Cisco, agreed earlier to be acquired by Lucent for $3.7 billion in stock. INS, of Sunnyvale, Calif., helps telecommunications carriers and other companies design, install and maintain computer networks. Its acquisition is expected to help Lucent better compete with Cisco. Cisco, which holds a 7.8% stake in INS and a seat on its board, was aware of INS's desire to be acquired and declined to do so "multiple times," Chambers said. "We don't think vertical business models will be effective," Chambers said. Cisco's strategy is to form partnerships with a number of companies that help sell its products. On Saturday, Cisco said it will invest $1 billion in KPMG LLC's Internet consulting arm. The type of deal struck with KPMG is an example of a relationship that fits with Cisco's "horizontal" organizational philosophy, Chambers said. He said he shared Cisco's philosophy with INS and INS was aware of the impending agreement with KPMG. While INS primarily sold Cisco products, it will now favor Lucent. In the wake of the INS-Lucent deal, "You will see us get dramatically closer to other partners," Chambers said. Concern over the loss of business from INS helped cause Cisco's share price to fall 1 1/16, or 1.8%, to 58 3/4 on Tuesday at the close. Cisco's shares recovered in after-hours trading following the earnings report. According to Reuters Instinet, Cisco shares changed hands at 59 3/4, up 1 from Tuesday's close. interactive.wsj.com