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

To: blankmind who wrote (5912)	5/16/1998 1:13:00 AM
From: Tech97	Read Replies (1) \| Respond to of 6980

Update on the potential sale of BAY Sources: Nortel to snap up Bay by next month By Jim Duffy and Sandra Gittlen Network World Fusion, 5/15/98 Northern Telecom, Inc. is looking to purchase Bay Networks, Inc. within the next four or five weeks, according to Bay and Nortel business partners who requested anonymity. Nortel would like to announce the Bay acquisition at the Supercomm '98 trade show in Atlanta the week of June 8, the sources said. These sources added that Nortel did indeed make an offer for Bay before last week's NetWorld+Interop '98 show in Las Vegas. Reports circulated early this week that Nortel made this offer and that Bay rejected it for a higher price. This reported volley, which Bay and Nortel declined to comment on, boosted Bay's stock price by 16%. The amount of the alleged offer is not known, but observers say it was between $32 and $35 per share, or $7.3 billion to $8 billion. Bay shares are currently trading at $26.38. Observers believe Bay will agree to be acquired for $40 per share, or $9.1 billion. The company's market cap is currently $5.5 billion. Nortel would like to grab Bay before October. October is when Nortel rival Lucent Technologies, Inc. could bid for Bay in a pooling of interest transaction, which may be preferable to a cash purchase for a deal of this size. Because it is majority-owned by Canadian telecom giant Bell Canada Enterprises, Nortel is precluded from pooling stock to buy an American company. Pooling of interests allows companies to combine balance sheets and report higher earnings without tax impact. Lucent was prohibited from pooling for two years after being spun off from AT&T. Nortel and Bay officials did not comment.

To: blankmind who wrote (5912)	5/16/1998 1:23:00 AM
From: StockMan	Read Replies (2) \| Respond to of 6980

There are a couple of good articles at networkworld.com (password required), which talk about Nortel buyout and a bunch of products announced by Bay at N+I. In products and product quality, Bay is leaving Cisco in the dust. Cisco appears to be scrambling to catch up, they just went out and bought an "application services" company for 50 mil after Bay just announced such a capability. However integrating it into the IOS will take a lot of time, and Bay's lead is only lengthening. Any company with Bay's product portfolio, installed base (telcos) and deep pockets, and drive, can easily topple Cisco. How much is that worth (cisco market cap of 76 billion?) Stockman

To: blankmind who wrote (5912)	5/18/1998 9:21:00 AM
From: Neil H	Respond to of 6980

May 18, 1998, TechWeb News Bay To Enhance Key Routing Platform -- Faster co-processor for Backbone Node to let more traffic through WAN links By Monua Janah Bay Networks Inc. this week will preview enhancements to its flagship routing platform. First up for the Backbone Node router is a faster co-processor that will let customers squeeze more traffic through WAN connections. The faster co-processor for the BN, which is widely used in the core of enterprise networks, will ship next month. In 1999, Bay plans to offer a PowerPC-based processor that will let the BN support Gigabit Ethernet LAN interfaces. Bay also plans to make several upgrades to its routing software. The next release-BayRS 12.20, due in June-will let customers set up several virtual LANs. These are groups of users configured logically regardless of their location. BayRS 13.10, to be introduced in 1999, will have enhanced security and traffic-prioritization features. It will be followed by BayRS 13.20, which will have additional traffic-management and Systems Network Architecture improvements. Analysts say the BN complements Bay's Accelar line of route switches, introduced last year. "If all you're doing is LAN-to-LAN connections, then the hardware-based route switches are good," says Dave Passmore, president of NetReference Inc., a network consulting firm. "But they're not good at managing the LAN-WAN boundary, at speed-matching, and at handling complex [technologies] like frame relay and ATM. That's where you need the software-based router." Union Pacific Railroad is evaluating the Accelar and gigabit route switches from other vendors for the core of its LAN but plans to keep its Bay routers for handling WAN and VLAN connectivity. Brett Frank- enberger, a telecommunications engineer at Union Pacific, says he looks forward to the Gigabit Ethernet and VLAN support. Neither the Accelar nor the BN uses the Route Switch Processor, introduced in 1997 as the foundation of Bay's future route-switching products. Says Passmore, "I think it's pretty clear they're shelving that."