Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Cabletron Systems (CS: NYSE) -- Ignore unavailable to you. Want to Upgrade?

To: jelrod3 who wrote (4391)	7/12/1998 11:39:00 PM
From: Norman Klein	Read Replies (2) \| Respond to of 8358

More on CS/NETVA merger The following is from BusinessWeek: <<The merger is expected to be completed promptly following approval by NetVantage shareholders. The merger agreement was unanimously approved by the board of directors of both companies and the transaction will be recommended by the NetVantage board to its shareholders. The parties are also entering into OEM and manufacturing agreements, which will take effect immediately, under which Cabletron may sell and manufacture certain NetVantage products. Cabletron is paying NetVantage $5 million as an initial payment under the manufacturing agreement. The manufacturing agreement will remain in effect even if the merger agreement is terminated. The OEM agreement, however, will expire upon termination of the merger agreement. >> My own informal polling strongly indicates that NETVA shareholders are strongly in favor of this agreement (basically it is the only realistic hope that they have of recouping their initial investment). So I believe that NETVA shareholder approval is a foregone conclusion. But from reading all the available press releases, I don't think that CS management can back out of the merger now. They basically have already signed off on the merger. The only ones that can overturn it is the NETVA shareholders and they desperately want it. So IMHO the CS/NETVA merger is a done deal. I still haven't pulled the trigger yet (traded in my CS for NETVA stock yet), but my finger is getting mighty itchy. Please point out any flaws in the above reasoning.