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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: Mark Oliver who wrote (453)	5/18/1998 2:01:00 PM
From: Mark Oliver	Respond to of 14638

Inter@ctive WeekMay 18, 1998 Speculation Persists About Bay As Telecom Buyout Target By Joe McGarvey 12:00 PM EDT The rumor that Bay Networks Inc. soon will be acquired by a telecommunications equipment maker picked up steam last week due to reports that Northern Telecom Inc. made an unsuccessful bid to acquire the network equipment maker. Bay's stock jumped nearly four points, to $27.75 per share, on May 13, following widely published reports that Bay officials turned downed an acquisition bid from Nortel. Details of the alleged proposal were not disclosed, and neither company would comment. Rapid acceleration of the convergence of networks that carry voice and data services to corporations is fueling rumors (Inter@ctive Week, May 11, page 1) that Bay will fall into the hands of a telecommunications giant such as Nortel or Lucent Technologies Inc., which also is believed to be interested in Bay's data networking gear for enterprise networks. "It's fair to say that Bay could be an attractive combination with someone on the voice side," said Tim Luke, an analyst at Lehman Bros. "Whether they are in actual negotiations is another matter." Bay reported a loss of $144.1 million on revenue of $547.2 million in its most recent fiscal quarter. The loss included a charge of $154 million, related to two acquisitions. While Nortel and Lucent have attracted most of the attention surrounding Bay's future, there could be other potential suitors. "We tend to overlook these European companies, such as Siemens and Alcatel," said Brendan Hannigan, an analyst at Forrester Research Inc. In addition to Siemens AG and Alcatel Alsthom SA, LM Ericsson also has been mentioned as a possible suitor. Bay can be reached at www.baynetworks.com Nortel can be reached at www.nortel.com Lucent can be reached at www.lucent.com Siemens AG can be reached at www.siemens.com Alcatel Alsthom SA can be reached at www.ans.alcatel.com LM Ericsson can be reached at www.ericsson.com

To: Mark Oliver who wrote (453)	5/18/1998 6:49:00 PM
From: P2V	Read Replies (2) \| Respond to of 14638

Mark, Ref . I find it interesting that thread sentiment is down on the merger. I'm new to this thread, and do not share that sentiment. I've been pleasantly impressed with the general attitude of the Bay employees who participate on the Bay thread, and their respect for "Doctor" House. It appears to me that Bay has been "nipping at Cisco's heels", with some impressive products. My guess is that with the backing of a company,such as Nortel, Bay would be able to get a much larger market share, from Cisco. Regards, Mardy.