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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: chenys who wrote (17624)	6/17/1998 6:34:00 PM
From: The BayWatcher	Read Replies (2) \| Respond to of 45548

Here's the full text of the news article released today re: rumor of Ericsson and 3COM: Rumors Of Ericsson-3Com Combination Spread Across Wall St By Mark Boslet PALO ALTO, Calif. (Dow Jones)--Northern Telecom Ltd.'s (NT) proposed acquisition of Bay Networks Inc. (BAY) is leading to speculation other major data networking vendors might be ready to go next. Among the most active of these rumors is a persistent claim that L.M. Ericsson Telephone Co. (ERICY) is eying 3Com Corp. (COMS), the maker of networking switches, hubs, modems and network access adapters. Both Ericsson and 3Com officials decline to comment on what they say is simply the "rumor du jour." But analysts and investors say reports the two companies have discussed a potential combination continue to circulate, after first popping up about three days ago. The ground is fertile for such talk to take root. Traditional telecommunications equipment suppliers see a big opportunity in the emerging market for equipment enabling voice and data traffic to converge over a single network. Preparing for this eventuality means providing equipment that can handle data traffic, exactly the gear that 3Com, Bay Networks, Cisco Systems Inc. (CSCO) and others offer. Companies such as Ericsson that are interested in the data and voice convergence market can't ignore offering data networking products that corporations will want, said Noel Lindsay, a former networking industry analyst. But other analysts question whether Ericsson is the right partner for 3Com, in part given the company's relationship with Siemens AG. Ericsson is probably looking for a "more pure fit" - in other words, a networking equipment company without the exposure to modems and network adapter cards - said Andy Schopick, an analyst at Nutmeg Securities. 3Com shares were off modestly, falling 15/16, or 3.7%, to 24 5/8. Trading volume was 8.7 million. Average volume is 6.8 million. Options activity Wednesday and Tuesday in the stock was heavy. Ericsson was up 1 1/16, or 4%, at 27 7/16. Trading volume was 4.6 million. Average daily volume is 4.2 million. -Mark Boslet; 650-496-1366 Meanwhile, one analyst and several Internet message boards speculated that Ericsson is also looking at buying Ascend Communications Inc. (ASND). But over the last month, rumors that Ascend is a takeover target have paired the company with several possible partners, including Lucent Technologies Inc. (LU).