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.

Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: kathyh who wrote (30560)	4/22/1999 10:19:00 AM
From: Neil H	Respond to of 90042

Thursday April 22, 9:47 am Eastern Time Company Press Release SOURCE: StockHouse Media Corporation California Technology Analyst Tells StockHouse.com: Ericsson to Buy 3Com; Others Hint at Possible Takeover MIAMI, April 22 /PRNewswire/ -- California Technology Stock Letter analyst Michael Murphy confirmed in a StockHouse feature interview that his recent Buy recommendation on 3Com (Nasdaq: COMS - news) was based on his expectations that Ericsson would takeover 3Com by year-end. Murphy warned that a weak 3Com Q4, if the company did not meet their earnings expectations, would ''absolutely'' place 3Com into takeover play. Murphy believes that Ericsson met 3Com for buyout talks about ''3 weeks ago.'' Murphy suggested other suitors might include Siemens, Alcatel, Nokia or Lucent. In a separate interview, Needham & Co. analyst Peter Lieu told StockHouse, in response to a possible takeover by Ericsson, Siemens, Alcatel, Nokia or Lucent, ''...there's tremendous value. I tell people the analogy I draw is that if you have a pretty girl go to a dance and she's all alone and you try to make your bet on who's going to take her home, chances are there will be a lot of interest. But, you can't really pick, who she's going to go home with. I'm looking at a company with $6 billion of sales, and if you take the cash away from the market value -- it's selling at 1X sales? It's a bargain. It's an extraordinary bargain. This is not a crappy company. This is a company that earns gross margins of 47 percent.'' In a StockHouse Special Report, Lehman Brothers analyst Tim Luke told StockHouse, ''They (Ericsson) are definitely looking at a larger acquisition in the equipment base and are specifically interested in 3Com's remote access business.