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Technology Stocks : Data General Corp. "dgn" -- Ignore unavailable to you. Want to Upgrade?

To: Arizona997 who wrote (246)	10/30/1998 9:45:00 AM
From: DJBEINO	Respond to of 354

DOES DATA GENERAL NEED A PARTNER? (todays BW) Data General (DGN), which skidded to 7 on Aug. 31--down from 17 in early June--is back on the radar screens of investors who play the takeover game. They are betting that Data General, which has risen to 13, is being pursued by the likes of Storage Technology or Sun Microsystems. What is the logic behind this reasoning? They figure Data General is a compelling buy both on fundamentals and as takeover bait. ''DGN is an undervalued player in the attractive enterprise [data] storage market,'' says Don Young, a technology analyst at PaineWebber. Data General is too small, he adds, ''to stand alone.'' It ''needs to align, partner, or merge with other industry players.'' He figures that Data General has a breakup value of $23 to $40 a share. The company's Clariion storage division alone is worth $15 to $22 a share, estimates Young. And the company's other major business--the Aviion server unit--''appears to be in the best strategic shape,'' says Young, who figures it is worth $11 a share. PaineWebber investment strategist Edward Kerschner picks Data General as one of his takeover bets in technology. He says other possible buyers include Hewlett-Packard and IBM. ''With DGN trading at just 20% to 30% of revenues, the stock is attractively valued,'' says Kerschner. DGN spokesman Jim Dunlap declined comment.