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

To: john dodson who wrote (2542)	12/14/1997 12:59:00 AM
From: bob zagorin	Respond to of 5036

you're right john so the question, to me, is - does shva have anything of real value in today's marketplace? if not, nortel wouldn't be interested and they're in a death spiral. If so, what is it? my thesis is that they provide a critical component of nortel's enterpise solution and they have some of the best technology. they can not, however, easily compete in this consolidating market area where users are looking for complete solutions. but that's what nortel is marketing with their power networks. shva provides a key component. nortel wants to encourage shva to participate. the new agreement will, at a minimum, provide a better environment to make shva profitable in 98; at a maximum, they will be a reasonable acquisition that works because the shva solutions can easily fit into nortel business and there should SG&A savings. Nortel does not want to steal the company; the want to maintain their momentum in a very dynamic marketplace. all in my opinion, of course.