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More on 3Com
By Mark Evans | July 19, 2007
So, 3Com is apparently in play - and Nortel is apparently one of the potential suitors.
First, if Nortel is interested in 3Com, it will likely have to compete against private equity investors who may see 3Com as relatively inexpensive and fixable (see Blogging Buyouts more on this idea).
The question is whether Nortel wants/need 3Com and whether it’s willing to cough up $1.8-billion (3Com’s current market capitalization).
Does Nortel need 3Com to jump-start its enterprise growth strategy? After all, 3Com does sell a portfolio that includes networking hardware and software, including switches, routers, gateways, Internet telephony systems, security systems and wireless networking equipment for enterprises. As well, 3Com has a services and systems integration unit - a business that Nortel likes these days.
With the reported bid for Avaya, Nortel is clearly willing to make an acquisition to get a bigger foothold in the enterprise market. The question is whether 3Com is the right vehicle to do it or whether there’s other, more attractive targets out there.
Of course, all this speculation is probably the work of investment bankers who now know Nortel’s a potential buyer.
For more, check out Tech Confidential.
Topics: M&A |