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

To: ioioioi who wrote (5809)	5/13/1998 7:23:00 PM
From: Anthony Wong	Respond to of 6980

Read this, thread. The story is still evolving: Bay Networks up 15% on Controversial Published Report May 13, 1998 5:51 PM NEW YORK (Dow Jones)--Bay Networks Inc.'s (BAY) shares jumped 15% Wednesday after Bloomberg News reported that the company rejected an acquisition offer from Northern Telecom Ltd. (NT) as too low. But the one named source for the article denied that he had confirmed the report about Nortel and said his comments were taken out of context. The story, which appeared late Tuesday, said that Kevin Fong, a partner with the venture capital firm Mayfield Fund, had spoken with Bay Networks' executives "about the offer." Fong told Dow Jones, however, that while he has heard general acquisition rumors on Bay Networks, he doesn't know anything specific about an offer from Nortel. The Bloomberg article also quoted Fong as saying, "It's no longer a question of whether they are for sale, it's now a disagreement over price." Fong said that while he stands by this statement, he wasn't referring to any specific deal. Rumors have been circulating for several weeks that a number of telecommunication equipment companies, including Nortel, Lucent Technologies Inc. (LU), Alcatel Alsthom (ALA), Ericsson Telephone Co. (ERICY) and Siemens AG, have been eyeing Bay Networks. And a number of analysts said they had heard that Bay Networks had instructed its investment bankers to prepare financial documents about the company to show potential buyers. The Bloomberg reporter who wrote the article said he stood by the story and that he had other, unnamed sources who confirmed that Nortel had bid for Bay. Bloomberg is a competitor of Dow Jones.