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 : PairGain Technologies -- Ignore unavailable to you. Want to Upgrade?

To: Emile Vidrine who wrote (25399)	8/16/1998 4:51:00 PM
From: Rainmaker	Read Replies (2) \| Respond to of 36349

It wouldn't make sense that they initiate an IPO and get bought within a two year period. In that scenario, they would be better served by considering a deal similar as Tropicana (news release of pending IPO; purchase by Pepsi before IPO). This is a heck of a lot cheaper than going through with an IPO (of course, Lehman (?) would LOVE the fees). The IPO is likely being issued to raise money for growth (e.g. R/D, marketing, etc.). My guess is that they have limited appeal to a "Big Boy" to be considered for a purchase. Ergo, the IPO. Other question that beg to be asked are: "If they have financial backing from MSFT and T, why do they need to go public if they are a VERY PROMISING company? Doesn't MSFT and T have faith in this company to give a few more millions?" $100M for these two is pocket change. IMO, they may have a leg up on PAIR with respect to WAN and LAN, but can they compete with the likes of Cisco? Tough one if you ask me. Also, it appears they have no connections with the RBOCs (clear advantage for PAIR) and limited relations with CLECs.