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

To: Scrapps who wrote (28846)	3/8/1999 3:57:00 PM
From: Doughboy	Read Replies (1) \| Respond to of 45548

Full Article on Siemans announcement from Reuters/Yahoo: On 3Com, Siemans says that it is "too speculative" for the market to consider that Siemans will buy 3Com's networking business. He's parsing that denial a little too finely, methinks. My read: we've talked to 3Com about buying their networking unit and we'll continue talking, but right now they're asking too much for it. Doughboy. Siemens seeks to buy more firms, strengthen pacts By Jessica Hall NEW YORK, March 8 (Reuters) - Siemens AG (quote from Yahoo! UK & Ireland: SIEG.F), which Monday announced some vital acquisitions in the U.S. data networking market, expects to pursue more deals and strengthen its existing alliances with companies such as 3Com Corp. (Nasdaq:COMS - news) Siemens said it will acquire two privately-held data networking companies and take a stake in a third company, called Accelerated Networks Inc. Siemens will spend about $300 million to acquire Westford, Mass.-based Castle Networks Inc., about $240 million to buy Littleton, Mass.-based Argon Networks Inc. and about $30 million for a stake in Moorpark, Calif.-based Accelerated Networks, according to Anthony Maher, a member of the managing board of Siemens information and communication networks group. Maher confirmed the values of the deals, which were first reported by the New York Times. These investments are part of an initial $1 billion earmarked by Siemens for the data networking market. Siemens expects to make further acquisitions but declined to identify the specific products areas it will pursue. ''This is the beginning. If something is of value, we will move quickly and precisely to pursue that,'' Maher said at a press conference in New York. The acquisitions will most likely occur in the U.S., but Siemens may consider international opportunities as well, Maher said later in an interview. In addition to pursuing other deals, Siemens also may strengthen its existing relationships with 3Com and Newbridge Networks Corp. (Toronto:NNC.TO - news), Maher said. Maher said Siemens and Newbridge have discussed their relationship in recent weeks, reviewing the three-year relationship and considering ways the companies can move forward to address markets such as wireless. Newbridge has also been supportive of Siemens' plans to move aggressively to acquire U.S. data networking companies, Maher said. Siemens' new acquisitions will not dilute its commitment to Newbridge, but instead may strengthen the Newbridge pact, he said. ''The things we are doing, they think are right. And we're discussing ways that we may be able to bring the things we are doing to the Newbridge relationship,'' Maher said. Siemens is also discussing expanding its relationship with 3Com, but those discussions do not include Siemens buying 3Com's unit that sells networking equipment to telephone companies, Maher said. Maher said recent media reports which suggested Siemens may buy the unit for $1.2 billion were speculative. ''That is a good unit and an important unit. But that is not part of the discussions. It's too speculative (for the market) to consider us doing that,'' Maher said. He declined to comment on how the two companies may expand their relationship. Siemens' priority will be to meld its acquisitions of Castle and Argon into its new Unisphere Solutions Inc. unit, which will be based in Burlington, Mass. Unisphere will include about 500 employees spread through the U.S., Canada and Munich and will focus on the blurring markets of voice and data communications. Unisphere initially will have about $200 million in annual revenues and is expected to grow faster than the average market growth of 14 percent, Maher said. The unit is currently profitable, but its acquisition spree will bring it into the red, Maher said.