2 companies go against convention for mergers
Article Abstract:
Northern Telecom and Bay Networks have decided to avoid integrating operations, should Northern Telecom's $9.1 billion bid receive approval. Plans call for Bay Networks to become a Nortel subsidiary while essentially maintaining its operating independence, according to Nortel CEO John Roth. The agreement between Roth and Bay Networks Chmn Dave House will not be popular with investors, who already believe Northern Telecom overspent on Bay Networks in Jun 1998. Northern Telecom's share value plunged by more than 15% on the day of its announcement. The principal Northern Telecom merger strategy consists of incorporating or even integrating Bay's data networking technology into its telecommunications systems designed for large phone companies. Prestigious Northern Telecom's net loss of $69 million for the 2nd qtr 1998, coupled with Bay's inconsistent earnings in recent years, have compounded the matter.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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Nortel is ready to fire new salvo in Internet telephony war
Article Abstract:
Nortel Networks Corp. is planning to develop several new products to aid corporations with the integration of telephone and data communications networks. The development of unified network technology has become a battleground between telecommunications equipment manufacturers like Nortel and Lucent Technologies Inc. and data networking product manufacturers like Cisco Systems Inc. Nortel is developing Internet-based network products to be used with existing office telephone networks which will be immediately available and other unified network products for a system designed around Internet technology. The latter will not be available until the second quarter of the year 2000. Lucent and Cisco Systems have gotten a head start over Nortel in Internet telephone technology development for telecommunications carriers.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1999
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Cisco Systems is giving up partner hunt
Article Abstract:
The failure of Cisco Systems Inc. to create partnerships with Lucent Technologies Inc. and Northern Telecom forces Cisco to compete alone as the industry leader in advanced data networking equipment. The expansion and consolidation, through big-name mergers, of the networking industry is led by Cisco, with 12,000 employees and a market value of more than $85 billion on revenue of $6.4 billion last year. The network industry is shifting from voice to data traffic, forcing a convergence between data networking equipment makers, such as Cisco, and telephone-based companies, such as Lucent and Northern Telecom.
Comment:
Merger talks between Cisco Systems, Lucent Technologies, and Northern Telecom end
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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