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Technology Stocks : Cabletron Systems (CS: NYSE) -- Ignore unavailable to you. Want to Upgrade?

To: zrm who wrote (7165)	11/22/1999 8:04:00 AM
From: BMcV	Read Replies (1) \| Respond to of 8358

well, you were right. Strange deal, though. The headline figure of $875 million is about a quarter of CS's current market cap, or more than half what CS was worth at the low. But it's a stock deal. And the acuiring company, EFNT, is one of those story stocks with a very inflated stock, trading at 25 times revenues / share. So if the story doesn't work, that $860 million will turn out to have been imaginary.

To: zrm who wrote (7165)	11/22/1999 8:16:00 AM
From: BMcV	Read Replies (2) \| Respond to of 8358

Anyone remember what CS paid for Flowpoint last year? Here's CS's PR--they also have an OEM deal with EFNT: biz.yahoo.com Cabletron Sells Flowpoint Subsidiary to Efficient Networks in Deal Valued At Over $860 Million -- Substantially Increases Shareholder Value ROCHESTER, N.H.--(BUSINESS WIRE)--Nov. 22, 1999--Cabletron Systems (NYSE:CS - news) today announces that it has reached a definitive agreement for the sale of its FlowPoint subsidiary to Efficient Networks (NASDAQ:EFNT - news) and has formed an OEM alliance with Efficient to fully penetrate the xDSL market. FlowPoint is the leading developer of broadband routers, and commands number one market share in the rapidly growing xDSL router market. Under the terms of the sale, Efficient will pay 13.5 million shares for the FlowPoint subsidiary of Cabletron Systems. Based on Efficient's closing price of $63.75 on November 19, 1999, the transaction has an aggregate value of approximately $860.6 million. This agreement makes Cabletron the largest shareholder in Efficient. Pending regulatory approval, the sale is expected to close during Cabletron's fiscal fourth quarter. ''Over the past six months, we have been extremely focused on identifying and unlocking the value within Cabletron,'' said Piyush Patel, Cabletron's president and CEO. ''Cabletron intends to continue focusing on providing high-end solutions, including web caching, server load balancing, and multi-dwelling unit solutions, to service providers, including ASPs, ISPs, CLECs, ILECs, MSOs and RBOCs.'' Through the OEM alliance, Cabletron gains access to the broadest portfolio of customer premise equipment in the industry--including DSL routers and modems-- while providing Efficient with the enhanced reach of Cabletron's large service provider sales force, 7 X 24 global support organization and broad suite of networking products. ''The acquisition solidifies Efficient's leadership in the customer premise portion of the DSL market,'' said Mark Floyd, president and CEO of Efficient Networks. ''By adding FlowPoint's DSL routers to our industry leading DSL modem product portfolio, we are extremely well-positioned to capture the explosive growth in the DSL market.'' The combined customer and partner list represents the largest service providers and DSLAM vendors including: AOL, Alcatel, Cisco, AccessLan, Copper Mountain, Ericsson, Interspeed, Lucent, NEC, Newbridge, Nokia, Nortel, Promatory, Pulsecom, Siemens, Coppercom, Jetstream, Redback, Rythyms, InternetConnect, Hong Kong Telecom, British Telecom, Telefonica, Bell South, Bell Atlantic, Ameritech, BSBC, Covad, PAC Bell, UUNET, Northpoint, BTI, CAIS Internet, Concentric, AT&T, Mindspring, and Earthlink.