Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: djane who wrote (46784)	5/13/1998 6:53:00 AM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 61433

ASND: COWEN & CO. increased estimate for long term EPS growth from 22.50% to 30.00% per year on 04/27/98

To: djane who wrote (46784)	5/13/1998 11:31:00 AM
From: djane	Read Replies (1) \| Respond to of 61433

Bay Networks Tells Analysts It Rejected a Bid From BCE's Nortel [Stix/Johnson comments] Bloomberg News May 12, 1998, 5:45 p.m. PT Bay Networks Tells Analysts It Rejected a Bid From BCE's Nortel Santa Clara, California, May 12 (Bloomberg) -- Bay Networks Inc. told analysts it rejected an acquisition offer from Northern Telecom Ltd. as too low but would consider higher bids from NorTel or other suitors. ''It's no longer a question of whether they (Bay) are for sale, it's now a disagreement over price,'' said Kevin Fong, a partner with the venture capital firm Mayfield Fund. Fong said he spoke to Bay executives about the offer. Chief Executive David House told Wall Street analysts at a meeting last week that the computer-networking equipment company would let shareholders decide whether to sell, said two analysts who attended the meeting, who asked not to be identified. A spokesman for Santa Clara, California-based Bay declined to comment. For NorTel, the purchase of a data-networking company like Bay ''is not out of the realm of possibilities,'' said Peter Nicholson, executive vice president of corporate strategy for NorTel's parent, BCE Inc. of Montreal. Northern Telecom and Lucent Technologies Inc., the two biggest makers of telecommunications equipment, are acquiring networking companies to expand their share of the fast-growing Internet market. Lucent bought Yurie Systems Inc. for $1 billion in April and Nortel purchased Aptis Communications for $290 million in March. Bay's profit and sales in the third quarter ended in March fell from the second quarter's, in the face of competition from larger rivals Cisco Systems Inc. and 3Com Corp. House could be willing to team Bay with a bigger company that doesn't yet sell computer-networking equipment to large businesses, analysts said. ''If there's an offer between $32 and $35 (a Bay share), the deal will happen,'' said Paul Johnson, an analyst with BancAmerica Robertson Stephens, who rates Bay ''buy.'' Bay shares today fell 5/16 to 24. At $35 a share, the company would be valued at $7.77 billion, or just over three times Bay's estimated revenue of $2.40 billion for the next four quarters. That price multiple is close to those of other large networking acquisitions, such as 3Com's 1997 purchase of US Robotics, said Chris Stix, a Cowen & Co. analyst who rates Bay ''buy.'' Bay would give NorTel a distribution system for networking equipment sold to large businesses, Stix said. ''It would be a good fit,'' Stix said.

To: djane who wrote (46784)	5/13/1998 11:33:00 AM
From: djane	Respond to of 61433

Bay shrs up on report co on auction block [Bellace comments] Wednesday May 13, 8:46 am Eastern Time NEW YORK, May 13 (Reuters) - Bay Networks Inc. shares rose ahead of the U.S. stock market opening after a news wire report that the Santa Clara, Calif.-based networking company rejected a takeover offer from Northern Telecom Ltd (NTL.TO - news) but was open to higher bids. A spokesman for Northern Telecom declined comment. A spokesman for Bay Networks was not available for commment. Bay Networks shares rose to 27 from their 23-15/16 close Tuesday. According to the wire report which was published in Wednesday's Los Angeles Times, Bay Networks told some analysts that it rejected a NorTel offer. The report said Bay Networks would consider higher bids from NorTel or other suitors. Merrill Lynch analyst Joseph Bellace, who said he was not aware of any ''formal analyst meeting'' last week, said Bay Networks has been informally up for sale for some time. ''Bay Networks has always been a (takeover) candidate, it's just a matter of price.'' As far as any recent formal takeover overtures, Bellace said he was not aware of any, adding, ''It's all unconfirmed speculation.'' More Quotes and News: Bay Networks Inc (NYSE:BAY - news) Northern Telecom Ltd (Toronto:NTL.TO - news) Related News Categories: US Market News Help Copyright c 1998 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon See our Important Disclaimers and Legal Information. Questions or Comments?

To: djane who wrote (46784)	5/13/1998 11:35:00 AM
From: djane	Read Replies (2) \| Respond to of 61433

briefing.com on BAY. More networking sector consolidation to come 08:55 ET ****** BAY NETWORKS INC. (BAY) 24 CLOSED. Computer networking concern is expected to be actively traded today as the company recently turned down an acquisition offer from Northern Telecom (NY 64 13/16). According to a Bloomberg news story, BAY told analysts that it had rejected a takeover offer from Northern Telecom because the bid was too low. The company went on to say that it would consider a higher bid. Hence, the implication is that the company has put itself in play and that it is up for sale, for the right price. Already on Instinet, shares of BAY has moved up to the $27 range as the stock has been recently stuck in the mid-$20s range for the past couple of months. To be sure, with Cisco Systems setting the pace for the networking market and winning market share at the expenses of its competitors, BAY has been on the short-end of the stick, especially after it reported disappointing fiscal Q3 results. In fact, after making great strides in 1997 of getting its operations in shape through better execution and the introduction of new products that allowed the stock to trade as high as $42 a share, the stock hit a brick wall with the collapse of Asia. In its latest financial report, BAY recorded weakness across all product categories and regions, with revenues falling more than 15% on a sequential basis. And with the landscape remaining very difficult over the intermediate term, a buyout at this time may be a welcome situation for investors, although the price that BAY is likely to fetch will probably be in the low $30s. The announcement that BAY has received a bid will most likely attract attention to the networking sector today as the area where consolidation will next take place.