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

To: Anthony Wong who wrote (5794)	5/13/1998 12:45:00 PM
From: blankmind	Read Replies (1) \| Respond to of 6980

Doug, there will be a buyer. Half of the companies I've invested in had been acquired - anthony wong it would appear that there is only a 50% chance based on your track record of investing and buyouts. it is still an incredible record.

To: Anthony Wong who wrote (5794)	5/13/1998 1:51:00 PM
From: Maverick	Read Replies (2) \| Respond to of 6980

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. By Briefing.com