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Technology Stocks : Banyan (BNYN $8.75) as an internet play -- Ignore unavailable to you. Want to Upgrade?

To: whyretire who wrote (488)	11/26/1998 2:21:00 PM
From: Joe King	Respond to of 1006

We might be in for a nice ride in the next few months:))) Westboro, Massachusetts, Nov. 25 -- Banyan Systems Inc. said it may spin off its No. 1 online phone directory www.switchboard.com from its core networking business next year to capitalize on a hot market for Internet stocks. Banyan shares have gained 64 percent since Monday on speculation that its Switchboard Inc. subsidiary, whose directory combines residential-phone listings and mapping technology, may be sold or spun off, analysts said. Its shares today fell 15/16 to 8 after earlier climbing to 9 1/2. At least 90 percent of Banyan's revenue comes from its core networking software and services business, Chief Financial Officer Richard Spaulding said. Banyan recently hired John Jewett as chief financial officer of Switchboard, whose revenue grew to 10 percent of Banyan's total from 1 percent a year ago. +AGAAYA-At some point in 1999, we may separate Switchboard,'' Spaulding said. +AGAAYA-We're clearly focused on growing that side of the business and there are a number of ways to increase value, including a spinoff.'' In a spinoff, Banyan would issue Switchboard Inc. shares that would be distributed to Banyan Systems shareholders. The various Baby Bell companies would be among the likely suitors in a buy-out situation, said Suzanne Chase, an analyst at Burnham Securites. Switchboard already is partnered with Bell Atlantic Corp., providing directory services for its +AGAAYA-Big Yellow'' directory site. +AGAAYA-People think Switchboard would have a very significant value in the market, and there's speculation that it could be bought or spun off,'' Chase said. +AGAAYA-They're starting to be recognized as an Internet phenomenon.''