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Technology Stocks : IDT *(idtc) following this new issue?* -- Ignore unavailable to you. Want to Upgrade?

To: blankmind who wrote (2426)	3/8/1999 1:58:00 PM
From: Skywatcher	Read Replies (1) \| Respond to of 30916

Maybe this is something to think about: Siemens To Invest $1B In U.S. Internet By Melanie Cheary FRANKFURT, Germany (Reuters) - Germany's Siemens AG announced Monday it will invest $1 billion in vital acquisitions in the U.S. data networking and Internet technology area, putting to rest recent speculation about how it planned to enter the sector in the United States. Siemens said it planned to take over two U.S. data transmission firms, buy a strategic stake in a third and establish a new U.S. division, called Unisphere Solutions Inc., comprising its data, speech and Internet solutions. The industrial and telecommunications giant said at a news conference in New York it would buy U.S. data networking firms Argon Networks and Castle Networks, and take a strategic stake in Accelerated Networks. Industry sources said the three purchases are valued at about $600 million -- around $300 million for Castle, $240 million for Argon and $30 million for a stake in Accelerated Networks. The remaining $400 million is attributed to the establishment of the new company which Siemens says is likely to make further acquisitions and joint ventures in the future. Analysts say Siemen's entry into this U.S. market is crucial if it wants to beat out rivals -- such as Alcatel SA, Ericsson and Lucent Technologies -- who have made a number of recent U.S. acquisitions. But Siemens shares got little thrill from the news which simply met expectations, traders said. The stock seesawed in heavy volume ahead of the announcement and weakened after, falling about 4 percent before recovering. Traders said investors were disappointed the group was not buying a unit of major Internet protocol technology firm 3Com which it was rumored to be doing. ''Siemens is always a company that disappoints on news,'' one trader said. Siemens stock closed 1.65 euros ($1.80) down at 57.70 euros ($62.78). ''Siemens shares hiked up last week on the possibility of a big thing and now the news has come as expected,'' another trader said, adding the $1 billion price tag was seen as too high. Nevertheless, Siemens said it and 3Com were examining possibilities for expanding their current cooperation agreement and that 3Com viewed Siemens' expansion into the data networking sectorpositively. Siemens said it would establish a Burlington, Mass.-based company called Unisphere Solutions Inc. which would comprise all its data, speech and Internet solutions operations and which was likely to make further acquisitions and partnerships. Former International Business Machines Corp. senior executive Martin Clague would become president and chief executive of Unisphere Solutions. Other telecommunications equipment suppliers have been obliged to expand their product lines amid the Internet boom. Alcatel last week announced it had bought Assured Access Technology for $350 million and also planned to acquire Xylan Corp. (Nasdaq:XYLN - news) for $2 billion. Lucent Technologies Inc. (NYSE:LU - news) bought Ascend Communications Inc. (Nasdaq:ASND - news) in January, and Northern Telecom Co. bought Bay Networks last year. chris