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

To: KLH who wrote (8000)	5/27/2000 9:38:00 AM
From: D.Austin	Read Replies (1) \| Respond to of 8358

Heeeellllllloooooo to all you fine people over here! I am sure you have all seen this story but is this a trend? buy high sell low I do hope the CS folks stole enough of the valuable technology to offset the 339 million dollar difference. Cabletron to Sell Digital Unit to Gores Technology Rochester, New Hampshire, May 24 (Bloomberg) -- Cabletron Systems Inc., a networking-equipment maker that's reorganizing into a holding company, agreed to sell a business acquired in 1998 from Digital Equipment Corp. to Gores Technology Group. Terms weren't disclosed, though Cabletron spokesman Tom McCallum said the sale was for ``probably less than $100 million.'' Cabletron bought the Digital Network Products Group in February 1998 for $439.5 million. Closely held Gores, based in Los Angeles, has a portfolio of 21 technology-oriented companies. Cabletron said two months ago it was close to selling the Digital business, which makes older network switches and hubs for corporate networks. The company is also trying to sell switch maker NetVantage, which it bought in September 1998 for about $77.8 million. Cabletron plans to split into four companies, sell shares in each and invest in other companies. Compaq Computer Corp., which bought Digital in 1998, is paying Cabletron $123 million to end an agreement under which Compaq was required to buy a certain amount of Cabletron gear each quarter. The original $1.1 billion, 3 1/2-year agreement stemmed from Cabletron's acquisition of Digital's networking business. The Digital unit has annual revenue of about $160 million, and that number has been declining, McCallum said. The purchase price will be disclosed after the sale is completed, he said. That's expected by the end of Cabletron's second fiscal quarter ending in August. Gores officials weren't immediately available to comment. It's bought businesses from companies including Thomson CSF and Texas Instruments Inc. Shares of Rochester, New Hampshire-based Cabletron fell 1/2 to 21 1/2 on the New York Stock Exchange. They've fallen 17 percent this year. May/24/2000 20:00 ET