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

To: Roads End who wrote (6492)	6/15/1998 10:41:00 AM
From: gbh	Read Replies (1) \| Respond to of 6980

My only point is NT is doing it without Pooling and so LU should be able to do it. NT is doing it tax-free. This is effectively pooling, although it may be called something else in Canada. Nortel to buy Bay Networks for $9.1 billion TORONTO, June 15 (Reuters) - Northern Telecom Ltd (NTL.TO - news) confirming a much rumored takeover, said on Monday it planned to buy Bay Networks (BAY - news) for $9.1 billion. Nortel will offer 0.6 of a share for each Bay Networks share, which it said represents $38.21 per Bay Networks share. Bay Networks will operate as a wholly owned subsididary of Nortel, which expects to issue 134 million common shares to close the acquisition. Based on Nortel's closing price of $63.69 a share on Friday the share issue represents a price of $38.21 a share for Bay Networks and $9.1 billion for the entire purchase. Bay's shareholders will own about 21 percent of Nortel. The merger should close late in this year's third quarter. The merger will be tax-free to Bay Networks shareholders and will see Nortel merge its data networks with Bay Networks. Nortel's chief executive John Roth will remain in that position while Bay Network chief executive and chairman Dave House will become the president of Nortel.