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

To: Moonray who wrote (30155)	4/26/1999 10:36:00 AM
From: G.F.	Read Replies (1) \| Respond to of 45548

Who's left now?....GF

To: Moonray who wrote (30155)	4/26/1999 11:34:00 AM
From: hitesh puri	Read Replies (2) \| Respond to of 45548

3Com to be acquired between 45 and 55 /share. FORE got bought at 6.2 times annual sales. Since 3Com annual sales of similar System products (Enterprise and Carrier) and other fast growing products (like Palm) represent 3.4 Billion of the total 5.7 Billion revenue, the acquirer will put a premium on that amount for a merger. Say if that is 5 times (which is the least I know of since all others like BAY, ASND, FORE have gone for more than that) the buyout tag is 17 Billion and with 375 shares outstanding it gives a minimum price of 45/share. If the premium is higher or the NIC business (which actually is quite profitable compared to Modems) is considered it can go much higher than that. Question is who can afford it and also take on the wrath of Wall Street ? -Hitesh