Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: rupert1 who wrote (70925)	11/3/1999 10:27:00 PM
From: Elwood P. Dowd	Respond to of 97611

NEC shares rebound sharply Pulling the plug on Packard Bell seen a plus By Bill Clifford, CBS MarketWatch Last Update: 9:28 PM ET Nov 3, 1999 NewsWatch TOKYO (CBS.MW) -- Shares of NEC Corp., the diversified Japanese electronics collosus, rebounded more than 6 percent in early Thursday trading. Investors are reacting positively to NEC's decision to pull the plug on Packard Bell NEC, the U.S.-based computer maker that is on track to rack up a loss of $150 million this year. NEC (NIPNY: news, msgs), which owns 88 percent of Packard Bell; and Groupe Bull SA of France, which holds the remaining 12 percent, had told shareholders to expect the unit would post a loss of no more than $100 million in 1999. NEC has racked up losses of over $1 billion on Packard Bell since it bought the computer maker three years ago. Shares of NEC were up 131 yen, or 6.6 percent, to 2115 in relatively heavy volume. Japan's stock market was closed Wednesday for a national holiday. NEC's stock had tumbled on Tuesday on a separate issue involving a U.S. lawsuit. The Wall Street Journal reported on Tuesday that lawyers who negotiated a $1 billion settlement from Toshiba Corp. (TOSBF: news, msgs) had sued five other PC makers including NEC over similar allegations of defective products. The separate suits, filed in Texas, also accuse Compaq Computer Corp. (CPQ: news, msgs), Hewlett-Packard Co. (HWP: news, msgs), Packard Bell-NEC Electronics Inc. and eMachines Inc. of selling PCs with faulty floppy-disk dries. The restructuring of Packard Bell NEC will result in layoffs of about 80 percent of the unit's staff and the departure of senior management. Chief Executive Alain Couder resigned and the company is calling on sales of the Packard Bell brand in the U.S. retail PC market. See full story. Bill Clifford is Tokyo bureau chief for CBS MarketWatch. Printer friendly format Refer this article to a friend For more breaking news, visit ou