Alcatel to buy Internet-gear frim Xylan; French concern is expected to pay about $1.6 billion for California company
Article Abstract:
Alcatel S.A. is expected to announce a $1.6 billion purchase of Xylan Corp. The French telecommunications equipment supplier's acquisition of the Internet equipment maker is seen as strengthening both its position as a major supplier to U.S. long distance and local telephone companies and of computer networking equipment. California-based Xylan has enjoyed a close relationship with Alcatel, to the point of seeing its stock decline last year when its French partner warned of lower profits; conversely, the stocks of other Internet equipment makers are likely to rise as a result of the takeover announcement. Though Alcatel declined to comment on the rumors, Xylan's stock rose to $26.9375, up 43.75 cents and may bring more than $35 a share at the time of purchase, according to one unnamed source.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1999
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Redback Networks to buy Siara Systems for $4.3 billion in stock
Article Abstract:
Redback Networks Inc. and Siara Systems Inc. are merging, forming a computer switching equipment company they hope will be large enough to compete with Cisco Systems Inc. and Lucent Technologies Inc. Redback has a current market capitalization of $6 bil. Industry experts value the total market for this equipment at $20 billion per year in sales. Redback's traditional market is a narrower $2 bil. The combined company will have a market value of $11.2 bil; 62% held by Redback, 38% held by Siara.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1999
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Comment about this article or add new information about this topic: