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

To: robz who wrote (29112)	3/20/1999 10:33:00 PM
From: W.F.Rakecky	Read Replies (1) \| Respond to of 45548

Siemens Considering Buying 3Com's Telecom Product Line, VP Says Munich, March 19 (Bloomberg) -- Siemens AG, the German phone- equipment maker that's pushing into the market for computer- networking gear, is considering acquiring products that 3Com Corp. sells to phone companies, a Siemens executive said. Munich-based Siemens now sells so-called remote-access equipment made by No. 2 Internet-equipment maker 3Com under its own brand. Telecommunications providers use remote-access products to route Internet calls. Siemens has spent more than $1 billion this month to buy three networking startups, yet it still lacks several key product lines. Siemens and Santa Clara, California-based 3Com have been developing products for two years, and in December unveiled a $100 million joint venture to make phones that carry voice and data communications over the Internet. In addition, there are ''ongoing conversations about how we can broaden the relationship,'' said Hans Schwarz, senior vice president of Siemens's enterprise data-networking unit, who was named the joint venture's general manager Wednesday. ''It's worth looking at extending the relationship,'' Schwarz said in an interview. He declined to say whether that meant buying the 3Com telecommunications unit outright. Siemens now sells 3Com's Total Control products under its InterExpress brand name. Analysts estimate sales of Total Control contributed about $500 million to 3Com's $5.42 billion in annual revenue last year. Siemens agreed to buy Redstone Communications Inc. for an undisclosed sum yesterday, following its March 8 purchases of Argon Networks Inc. and Castle Networks Inc. All are closely held U.S. companies. Siemens is pushing into data networking as sales of equipment used in traditional phone networks slow.