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: Tim McGee who wrote (28775)	3/5/1999 9:34:00 AM
From: Moonray	Respond to of 45548

More: Siemens Rises on Optimism About Expected Expansion Munich, March 5 (Bloomberg) -- Siemens AG shares extended yesterday's 6 percent gain on optimism the company is embarking on a buying spree to reinforce its data-networking business, the fastest-growing part of the phone-equipment industry. The shares of Siemens, Europe's No. 3 phone-equipment maker, rose as much as 3.25 euros, or 5.7 percent, to 59.90 euros ($64.88), bringing the company's two-day gain to 12 percent. Siemens agreed to buy closely held Argon Networks Inc., a U.S. maker of Internet equipment, for about $240 million, people familiar with the transaction said last week. The company is also in talks to buy Castle Networks Inc. for $300 million and a $30 million stake in Accelerated Networks Inc., the Wall Street Journal reported. ''These look to be pretty well positioned companies, so investors may be regarding them as worth the investment,'' said Ilkka Rauvola, an analyst at Paribas Capital markets. Siemens would only say that it's holding a press conference in the U.S. Monday on its network operations. With the data equipment market growing at twice the pace of voice, Siemens and its rivals are relying on acquisitions to help them gain the expertise they need. Rival Alcatel SA, for example, this week agreed to buy Internet technology companies Xylan Corp. and Assured Access Technology Inc. in transactions worth $2.35 billion. The purchase of Argon, for example, would help Siemens to keep pace with rivals by giving it a company that is already developing switching equipment to send data traffic over phone networks faster than existing gear made by No. 1 networking company Cisco Systems Inc. and others. Munich-based Siemens is planning to fold its purchases into a new U.S. subsidiary for its information and communications operations, according to news reports, and is hiring International Business Machines Corp.'s Martin Clague to head the new venture, the New York Times said yesterday. It's unclear, however, if Siemens also is in preliminary talks to buy 3Com Corp's networking equipment unit for $1.2 billion, as the New York Times reported yesterday, citing unnamed executives familiar with the situation. Today, the Wall Street Journal cited people familiar with Siemens' plans saying the company isn't talking to 3Com about buying any part of the No. 2 networking company. Siemens is already developing more products to carry voice and data on computer networks and the Internet, helped by an alliance with 3Com. The two companies broadened their alliance in December with a $100 million venture to develop phones that can send voice and data calls over corporate computer networks and the Internet. o~~~ O