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Technology Stocks : Commerce One Inc - (CMRC) -- Ignore unavailable to you. Want to Upgrade?

To: puborectalis who wrote (1255)	6/21/2000 1:09:00 AM
From: puborectalis	Read Replies (1) \| Respond to of 1938

In a bid to get its exchanges up and running, Commerce One (CMRC: news, msgs) is buying AppNet (APNT: news, msgs) for about $1.2 billion in stock, or roughly $35 per AppNet share. ?The Achilles heel for Commerce One has been deploying these exchanges,? said Ian Morton, an analyst Chase H&Q. ?Essentially, they?re buying bodies? to help them integrate these e-marketplaces faster. ?It?s in Commerce One?s best interest to get these exchanges up and running fast,? said Andrew Roskill, an analyst at UBS Warburg. ?They can?t just partner with a consulting firm because that?s punting to someone else,? he added. By buying AppNet, Commerce One will increase its consultant base to well over 1,000, up from some 200, said Roskill. But those bodies could be weighing on the stock. Shares of Commerce One fell 8 7/16, or 16 percent, to 43. Typically, software companies trade for higher multiples than hard-to-scale consulting companies. ?Personally, people should focus on strategic fit,? said Roskill. ?The concern now would be execution risk but the combination could accelerate Commerce One?s time to profitability.? The deal should close in 75 to 90 days, noted Roskill.