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To: djane who wrote (47692)	5/28/1998 7:57:00 PM
From: djane	Read Replies (3) \| Respond to of 61433

Reorganization under way at Bay Networks [Bay seems to be a mess these days] zdnet.com By Scott Berinato, PC Week Online 05.28.98 3:39 pm ET Bay Networks Inc. this week restructured its business, combining its Internet and Telecom Business Group and Enterprise Business Group. The new entity, called the Products Group, will take on all product development and management for both carrier and enterprise hardware and software. The sales forces for the two groups will also be combined over the coming weeks. Employees were informed of the move on Tuesday. The reorganization could signal a repositioning in anticipation of a merger with a large carrier vendor. Bay was linked recently with Northern Telecom Ltd. as a potential partner. That deal foundered, however, because of a difference of opinion about price, according to sources. Some observers now think Bay could hook up with a carrier vendor such as Alcatel Data Networks. Although Bay officials would not comment on merger speculation, a spokesman for the Santa Clara, Calif., company said the reorganization was undertaken to better address evolving customer needs and improve management of the entire product line. "There was a lot of disconnect between the two groups," said one industry observer familiar with the reorganization. "But if they want to be in the service provider space, they may lose their focus by merging the two groups unless another group is coming in." Bay (BAY) is at www.baynetworks.com. Send E-mail to PC Week \| Copyright notice