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: joe who wrote (23148)	10/23/1998 10:29:00 AM
From: Moonray	Read Replies (2) \| Respond to of 45548

Ericsson, Router Companies in Talks, Official Says Atlanta, Oct. 22 (Bloomberg) -- Ericsson AB, the world's No. 3 wireless telephone maker, is in acquisition talks with several data-networking companies whose products route Internet traffic on telephone networks, an Ericsson official said. Ericsson ''plans to move fast'' to acquire so-called routing technology, said Michael Thurk, executive vice president of Ericsson's data-networking unit, in an interview at the Networld+Interop conference in Atlanta. ''We've had discussions with several router companies here (at the conference) about partnerships and investment,'' Thurk said. The Swedish telecommunications giant has said previously it plans to push into computer networking by buying a number of small U.S. companies. Ericsson and other large telephone equipment makers are looking to sell more Internet equipment as the worldwide market for voice equipment slows. ''The Europeans need to buy their way in,'' said Craig Johnson, an analyst with the market research firm Pita Group in Portland, Oregon. Earlier this month, French phone-equipment maker Alcatel SA agreed to buy privately held Packet Engines Inc. for $315 million in cash. On Sept. 9, Ericsson agreed to buy Advanced Computer Communications, known as ACC, for an undisclosed amount of cash to acquire its remote- access concentrators. Remote-access equipment is used by phone companies to process incoming Internet calls, which are then sent to a router. No. 1 networking company Cisco systems Inc. sells 80 percent of the routers bought by Internet providers. Several privately held, startup companies are showing new router products at the conference, including Avici Systems Inc., Torrent Networking Technologies Inc., Juniper Networks Inc. and Nexabit Networks Inc. Northern Telecom ltd. owns a 20 percent stake in Avici, while Juniper has received investments from Ericsson, Northern Telecom, Lucent Technologies Inc. and others. Ericsson's purchase of ACC likely will close during the first week of November, Thurk said. He declined to give more financial details of the transaction, or provide the amount of Ericsson's annual networking revenue. The company expects to increase networking revenue by 50 percent to 100 percent annually, Thurk said. Ericsson will rename the ACC products under its own brand name, except for the Tigris line, which it now sells through Newbridge Networks Corp. Thurk also said the company does not intend to enter the market for low-cost equipment used in corporate networks, also called local-area networks, or LANs. ''We have no interest in the commodity LAN market,' Thurk said. That market is dominated by Cisco and No. 2 networking company 3Com Corp., which analysts had speculated could be a takeover target for Ericsson. o~~~ O