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 : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: gbh who wrote (53601)	9/2/1998 1:02:00 PM
From: djane	Respond to of 61433

I don't know, Gary. Based on these figures (however they are calculated), check out SHVA and LU -- basically even! -- and LU's 4% market share didn't change. Again, based on such figures, does anyone really doubt that LU (with designs as the premier telecom equip supplier to the world) will buy either COMS and/or ASND soon after 10/1/98?

To: gbh who wrote (53601)	9/2/1998 1:07:00 PM
From: djane	Respond to of 61433

Nortel plans to split up Bay Networks mercurycenter.com Published Wednesday, September 2, 1998, in the San Jose Mercury News BY JON HEALEY Mercury News Staff Writer Telecommunications equipment giant Northern Telecom announced plans Tuesday to divide and refocus recently acquired Bay Networks. The move will give Bay more resources for its battle against computer-networking rivals, Northern Telecom officials said. The split unravels the fabric of the blockbuster merger that created Bay in 1994, when Synoptics of Santa Clara joined forces with Wellfleet of Billerica, Mass. Nortel plans to put much of Bay's Santa Clara and Billerica operations into different lines of business, with different target markets. The unit that will be known as Bay Networks will remain headquartered in Santa Clara, with David House staying on as president and chief executive. Bay will take over Nortel's enterprise data networks operation, now based in Texas, which will make Bay a $3.5 billion company with 8,000 employees, compared to its current $2.4 billion in sales and 6,000 employees, spokesman Jeffrey Ferry said. The new Bay will concentrate on selling equipment to businesses that operate their own data networks. That market is dominated by Cisco Corp. of San Jose, whose sales topped $8.4 billion this past fiscal year. Ferry said that the new Bay is ''still very much a global company, but it's now much more focused on the enterprise.'' With the added muscle, he said, ''it can fight much better against Cisco and other rivals.'' James C. Balderston Jr., an industry analyst at Zona Research in Redwood City, sounded a less optimistic note. ''Cisco's still number one. This isn't going to knock Cisco out of number one,'' he said. ''This may cause a bit of turmoil back in the pack, the contestants for the place and show slots.'' Meanwhile, the Bay employees in Billerica whose target market was telephone companies and Internet service providers will join a new Nortel business line called Carrier Packet Networks. Based in Billerica, this unit will focus on equipping the next generation of telephone networks -- ones that use data-communications techniques to increase speed and capacity -- for carriers and service providers. That unit will encompass all of Nortel's far-flung efforts to develop data communications equipment for the public networks. It will be led by Clarence Chandran, former president of the Nortel unit in charge of equipment sales to telephone companies -- Nortel's biggest customers. Aman Kapoor, an analyst at Ryan Hankin Kent Inc. of South San Francisco, said that Nortel was the first of the major telecommunications equipment suppliers to announce such an approach, but it's not likely to be the last. Phone companies' purchases of conventional telephone switches are expected to level off in the next few years, Kapoor said, meaning that all the growth in the industry will come from data-communications technology. The largest of the telecommunications equipment suppliers, Lucent Technologies, has been shifting its focus toward data communications, too. Kapoor said that Lucent is widely expected to make a multibillion-dollar acquisition of its own later this year, snapping up one of Bay's competitors. [Well, that could only be ASND or COMS...] Announced on June 15, the Nortel-Bay deal was based on a stock swap originally valued at $9.1 billion. A sharp drop in Nortel's share price dropped the value of the company's offer to $6.7 billion, but Bay shareholders approved the deal nevertheless on Aug. 28, closing the deal. c1997 - 1998 Mercury Center. The information you receive online from Mercury Center is protected by the copyright laws of the United States. The copyright laws prohibit any copying, redistributing, retransmitting, or repurposing of any copyright-protected material.