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Technology Stocks : Ericsson overlook? -- Ignore unavailable to you. Want to Upgrade?

To: P2V who wrote (3167)	4/26/1999 1:03:00 PM
From: Jim Oravetz	Read Replies (2) \| Respond to of 5390

Sweden's Ericsson Plans to Buy Internet-Technology Companies By ALMAR LATOUR Staff Reporter of THE WALL STREET JOURNAL STOCKHOLM -- Telefon AB L.M. Ericsson officials said the company plans to acquire Internet-technology companies in the next four months. Officials refused to comment directly on rumors that the Swedish maker of telecommunications equipment is targeting 3Com Corp., a California-based maker of data-networking equipment, or that they have met with 3Com officials to discuss an acquisition. The rumors boosted 3Com's share price Friday by 16%, to $25.8125 on the Nasdaq Stock Market, up $3.50. Meanwhile, insiders at both companies indicated that no deal was imminent. "We entertain contacts and discussions with virtually all companies in the industry," said Lars Stahlberg, a spokesman for Ericsson. "We are continuously looking to find partners to complement our technology. I wouldn't be surprised if we find any good fits soon." Added Mike Thurk, Ericsson's general manager for datacom networks, "We can expect more acquisitions in the next four or so months." After a sluggish start in the Internet arena, Ericsson has steadily broadened its data-networking portfolio through its so-called string of pearls acquisition strategy. In less than a year, it has raised its stake in Internet-technology and data-networking companies such as Juniper Networks Inc., bought ACC, and acquired a handful of smaller operations, including Oz.com. Two weeks ago, it agreed to acquire Torrent Networking Technologies Corp., an Internet-technology company in the U.S., for $450 million in cash. Critics say Ericsson has to make more Internet-related acquisitions in order to compete with Cisco Inc. and others in the data-networking industry. Moreover, in the mobile-phone business, Ericsson has lagged behind rival Nokia Corp. of Finland.