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

To: Teri Garner who wrote (21531)	9/16/1998 9:27:00 AM
From: Neil H	Respond to of 45548

From CBS Marketwatch 3Com jumps on Intel buyout talk Speculation about 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. Jeffry Bartash is a reporter for CBS MarketWatch.