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

To: banjito who wrote (29)	2/12/2001 10:00:38 AM
From: elmatador	Respond to of 356

Siemens cuts IPO price for US networking unit By Martin Arnold Published: February 12 2001 13:47GMT \| Last Updated: February 12 2001 14:51GMT Siemens, the German electronics and engineering group, has cut the price range of the initial public offering of its US networking equipment unit Unisphere Networks by more than 20 per cent as a result of declining market sentiment in the sector. Unisphere, which was created in March to pull together Siemens' various networking equipment assets in the US, would raise about $144.5m at the new price range of $15-$17, down from a previous range of $20-$22. The new price would value the company at about $1.65bn, based on the details of its filing with the US Securities and Exchange Commission. The flotation, which Siemens hopes will provide the unit with much-needed funds for a series of possible small acquisitions, had already been delayed in December until the first quarter of 2001 and is now scheduled to take place before the end of the first half of the year, Siemens said on Monday. The leading US telecoms and networking equipment makers, which were among the stars of the tech-heavy Nasdaq market in the first half of 2000, have seen investor sentiment turn against them in the last six months. Shares in Cisco Systems, Juniper Networks and Lucent Technologies have all fallen more than 50 per cent from their 52-week highs. Unisphere focuses on internet protocol routing, broadband access and voice-switching and was formed out of three early-stage US networking companies acquired by Siemens in 1999: Redstone Communications, Castle Networks and Argon Networks. It is still heavily dependent on Siemens, on which it relies for more than 60 per cent of its sales. It posted a net loss of $402.1m in the year to September 31 2000. Siemens hopes the creation of an independent Unisphere will help it to learn from the more flexible US business methods that have made rivals such as Cisco and Juniper dominant in the new business of building the networking infrastructure that supports the internet. Siemens shares were down slightly at E142.21 in mid-afternoon trading on Monday. The company has appointed Credit Suisse First Boston, JP Morgan and UBS Warburg to manage the offering.