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To: facai who wrote (9186)	6/23/1998 6:39:00 PM
From: Eric Jorgenson	Read Replies (1) \| Respond to of 42804

Industry-related-- IN BRIEF: NORTEL, LUCENT SPURNED CISCO ADVANCES By Red Herring Online Staff June 23, 1998 Bellheads reject Cisco Cisco Systems (CSCO) CEO John Chambers says he tried to forge partnerships with telcom-equipment giants Lucent Technologies (LU) and Northern Telecom (NT), but those companies spurned his advances and said they would rather try to unseat Cisco as the top maker of data-networking equipment. In an interview with The New York Times, Chambers insisted that there is no possibility that Cisco will merge with either company. "We are not going to do a blockbuster merger with somebody else," Chambers told the Times. "Zero chance. It would be a disaster for the shareholders." The convergence of voice and data traffic on public networks has pitted Bellheads such as Lucent and Nortel -- which are tops in traditional circuit-switching equipment for voice communications -- against the Netheads, such as Cisco. Nortel and Lucent, both heavily capitalized, are moving on Cisco's data-networking turf. A partnership with either would have forestalled such competition, and could potentially have created a marketing powerhouse that profited on both sides of the switchover to data networks. Talks between Cisco and Nortel ended a few weeks ago, after Northern Telecom announced that it had agreed to acquire Cisco competitor Bay Networks (BAY) for $9.1 billion in stock.