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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: MIKenn who wrote (33307)	8/26/1999 6:44:00 PM
From: Mang Cheng	Read Replies (1) \| Respond to of 45548

"3Com Up 7% On Takeover Talk, But Analysts Are Skeptical" Dow Jones Newswires -- August 26, 1999 By Shawn Young NEW YORK (Dow Jones)--Shares of 3Com Corp. (COMS) surged Thursday on renewed speculation that Lucent Technologies Inc. (LU) would buy the company. The rumor, published earlier on the Jagnotes.com Web site, has circulated on and off for some time, and analysts are skeptical. "Rumors around this thing have always flown," said Sanford C. Bernstein & Co. analyst Paul Sagawa. "Some hedge fund or some trader just got bored and decided to start something," Sagawa said. JP Morgan Securities Inc. analyst Gregory Geiling made a nearly identical comment. He added that Lucent would be interested in at most one part of the Santa Clara, Calif., data networking ompany's business. "I don't think Lucent would buy the whole thing just for one piece," Geiling said. A spokesman for Lucent, based in Murray Hill, N.J., declined to comment. Officials at 3Com were not immediately available. Lucent would have little interest in 3Com's consumer business, led by the Palm Pilot, Geiling and Sagawa said. It also doesn't need and could run into antitrust troubles over 3Com's remote access equipment, analysts said. The company's business making modem and PC cards doesn't have the growth Lucent wants, although it might be moderately interesting Lucent, Sagawa said. That leaves the company's local area networking equipment sector, which Lucent could find attractive, the analysts said. 3Com shares recently were up 1 1/2, or 6.3% to 25 3/8 on Nasdaq volume of almost 9.2 million, compared with daily average volume of 4.7 million. Lucent's NYSE-listed shares were down 1 15/16, or 2.8%, to 66 5/16 on lighter than average trading. Shares of 3Com, which warned of revenue problems in June, have been trading at the low end of their 52-week range for months. The stock hit a 52-week high of 51 1/8 last Dec. 23 and reached a 52-week low of 20 April 7. -By Shawn Young; 201-938-5248; shawn.young@dowjones.com