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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: joe who wrote (21520)	9/15/1998 6:54:00 PM
From: FUZFO	Read Replies (2) \| Respond to of 45548

3Com jumps on Intel buyout talk Speculation aboutÿ takeover emerged last week By Jeffry Bartash, CBS MarketWatch Last Update: 5:37 PM ET Sep 15, 1998 See: NewsWatch SANTA CLARA, Calif. (CBS.MW) -- 3Com stock rode 10 percent higher Tuesday on recurring talk that it may be snapped up by Intel Corp. Shares of the network equipment makers shot up 2 7/8 to 30 5/16 on heavy volume. The speculation surged Tuesday after Intel chief executive Craig Barrett was questioned about 3Com (COMS) by a reporter during a forum in Palm Springs, Calif. Barrett declined to comment. Talk of an Intel-3Com alliance initially made the rounds on Wall Street last week An Intel spokesman also declined to address the issue. "We don't comment on rumors and speculation," he said. Officials from 3Com could not immediately be reached for comment. Intel stock edged up 1/8 to 85 15/16. Chip on its shoulder The interest of Intel, the world's largest maker of computer chips for PCs, could stem from its desire to enlarge the market for its chips. At present, there's not a huge appetite for Intel's increasingly powerful chips in networking and modem products. That's because download speeds of existing phone and data networking lines are not fast enough to allow computer users to reap the full benefits. Not surprisingly, Intel's sales of high-end chips aren't exactly flying. Indeed, more purchasers are flocking to cheap computers using low-end chips on which profit margins are low. That has crimped Intel's earnings. In the second quarter, for instance, the chipmaker registered profit of $1.2 billion, down from $1.6 billion a year earlier, on flat revenue of $5.9 billion. To help spur sales of its high-end chips, Intel has been making small investments in networking companies, hoping to speed up the development of faster networks for data and voice transmission. Progress has been slow, however, leading to periodic rumors that Intel is looking to buy a large networking company.