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Technology Stocks : BAY Ntwks (under House) -- Ignore unavailable to you. Want to Upgrade?

To: rupert1 who wrote (3378)	1/7/1998 2:02:00 AM
From: WBendus	Respond to of 6980

Vepoc, The purchase of $37 million worth of NSPK stock by Bay today is merely and investment the company so it can continue its R&D for voice and fax over IP. By taking just a 9% stake in the company, NSPK is able to continue its work on its products as an independant company. Typically it is in smaller companies that the best new technolgy comes, because as companies grow into larger companies, bureaucracies tend to deminish a company's ability to generate ideas and take decisive action. The 9% investment is far less of an investment than Bay would need to make in order to produce the technology itself and by making this investment, they have a stake in the companies future products should the pan out. Furthermore, this investment is not a huge expenditure by the company and should have very little impact on the companies balance sheet, even in the event that NSPK flops. This move by BAY is an assurance that the company will continue to be able to compete with the ciscos of the world. Wayde.