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

To: BeachCrunc who wrote (28725)	3/4/1999 8:12:00 AM
From: MskiHntr	Respond to of 45548

Early trading from Instinet: Last 26, Vol: 120,000

To: BeachCrunc who wrote (28725)	3/4/1999 8:18:00 AM
From: elmatador	Read Replies (1) \| Respond to of 45548

Ref: "sells network equipment to phone companies": Siemens and 3COM sell their first collaborative products, the results of their strategic alliance started in 1997. These products include communications servers and digital phones, LAN telephony gateways, and call processing software. These products will enable many new applications, including allowing users to make voice calls from LAN-connected personal computers and telephones across public switched telephone networks (PSTNs). Siemens combines its strengths in PABXs HICOM enterpises solutions with 3COM's data. For Siemens covergence starts before the telephone switch. The 3Com PBX is based on Siemens Hicom 150E technology and offers businesses the advantages of integrating their LAN and PBX equipment in a single stackable system, managed by a common application.

To: BeachCrunc who wrote (28725)	3/4/1999 9:49:00 AM
From: Doughboy	Read Replies (3) \| Respond to of 45548

If you read the NY Times article, it's clear that the 1.2 bb is for 3Com's networking business alone. The other Siemans investments are separate; Siemans might invest as much as 3 bb total. Obviously, 3Com is pairing up a little late, so the big buyers (Nortel, Lucent, Alcatel) have already taken their dates into the back room and are plugging them for all that they're worth. So don't expect a bidding war for the ugly girl. (sorry for the sexist metaphors.) The question is, is 3Com's business worth more than 1.2 bb? Anyone have any thoughts on that? I would expect that 3Com would use the money for the stock repurchase plan; that could reduce the float by approx. 48 million shares which may add .20 cents to fy99 earnings (or about 15%). Since that business is not the one that is struggling, I think it may be a cheap buy by Siemans. Doughboy.