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 : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: Paul Fine who wrote (659)	9/1/1998 11:44:00 PM
From: Neil H	Read Replies (1) \| Respond to of 14638

Nortel realigns units, reiterates growth biz.yahoo.com Regards Neil

To: Paul Fine who wrote (659)	9/1/1998 11:47:00 PM
From: Neil H	Respond to of 14638

Tuesday September 1, 7:05 pm Eastern Time Nortel to set up new division for networking By Sarah Edmonds TORONTO, Sept 1 (Reuters) - Telecommunications equipment company Northern Telecom Ltd. will set up a new division with new-style and old-style network products under one umbrella, capitalizing on the Internet networking expertise of newly acquired Bay Networks Inc. (BAY - news) Bay's Internet Protocol networking products will augment Nortel's traditional telephone circuit switching business, Nortel Chairman and Chief Executive John Roth said in a telephone interview from Boston. The new unit will combine 6,000 people from across Nortel with employees from Santa Clara, California-based Bay, which has merged with Nortel in a deal worth US$9.1 billion. The deal closed on Monday. ''With the formation of a carrier packet networking group, which will be headquartered in Boston, we really are now in a situation where we can take to our market and to our customers the unification of packet and circuit networks to both our enterprise (business) customers and to our carrier customers,'' Roth said. ''The circuit world, which is the network that's been built over the last decade, of digital technology that will handle both voice and data, will give way over the coming years to more and more packet technology. But these two networks will have to coexist for many years.'' Packet switching is an Internet technology that allows data to be sliced into packets and sent in bursts through a network to a remote location. Circuit switching, used in most telephone voice communications, keeps a circuit open constantly between two or more users. Roth said Nortel's ability to unite the two networks for business customers and telecommunications carriers, allowing them to run the two in a ''sensible fashion'' will help the company increase its market share. The Bay-Nortel combination would have had 1997 sales of US$18 billion and has more than 80,000 employees. Nortel also on Tuesday officially named David House, chairman, president and chief executive of Bay, as Nortel's president and appointed him to the board. George Weston Ltd. (WN.TO - news) and Loblaw Cos Ltd. (L.TO - news) president Richard Currie was also named to the board. Roth reiterated that the Bay merger, which was completed in just 75 days, will be slightly dilutive at the end of 1998 but will add to earnings ''slightly'' next year. "Slightly is anything over a couple of cents," he added. Regards Neil