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Technology Stocks : COMS & the Ghost of USRX w/ other STUFF -- Ignore unavailable to you. Want to Upgrade?

To: Scrapps who wrote (17150)	8/24/1998 8:34:00 PM
From: Elroy	Read Replies (2) \| Respond to of 22053

Scrapps, You're right, it's not the whole xDSL division, but appears to be a part of LU that supplies one component used in xDSL products. From what little I know, the division LU is selling is in the same business that BELFA is currently involved in - supplying components used in networking equipment. Why did LU divest the division? No idea. Maybe it's too commodity oriented for LU, but exactly right for BELFA since it expands their customer base and manufacturing capability. LU is more focused on high end technologies, and I think this stuff is pretty commodity-manufacturing oriented. Kind of strange that none of the financial terms of the transaction were revealed. I thought it was interesting the Netcom (which uses 3Com Total COntrol Hubs) announces xDSL plans today, that BELFA had indicated initial shipment of xDSL components in their earnings release, and that after the close BELFA buys an xDSL component division from LU. Maybe one implication is that BELFA's financial performance will become a leading indicator of xDSL chip/equipment sales. Elroy