As part of the company’s attempt to shore up its fading position as the fourth largest networking company, Cabletron Systems Inc says it will make a significant, strategic announcement this morning (Wednesday) regarding the company’s future. Cabletron has looked like a potential acquisition target for some time. Its stock has only inched up since it plunged 34% in one day when the company warned of poor first quarter results (CI No 3,174). The subsequent poor results and a downbeat forecast for the second quarter did little to improve the company’s stock price. Discussion on Wall Street circles around a number of companies that may be set to acquire the company and Compaq Computer Corp seems the most likely. Compaq has long been touting its networking ambitions but has shied away from any major acquisition in the market. Cabletron may well be the major company it has been waiting for. Other companies linked as possible suitors are Northern Telecom Ltd and Lucent Technologies Inc. Another option, though less likely, is a possible merger with Newbridge Networks Inc.
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