Storage Technology Corp wants to buy Network Systems Corp in part because it wants to exploit Asynchronous Transfer Mode technology, saying it will provide the software and Network Systems the hardware to produce an integrated system; it sees Network Systems as well-positioned to provide the gateway from interconnected data centres to the world of client-server computing, working as it is with Northern Telecom Ltd to develop an Enterprise Routing Switch; as to terms of the deal, if the price of Storage Technology shares falls below $30 and change, Network Systems will have the right to have the proposed merger deal improved, and if StorageTek complied, Network Systems would be obligated to go ahead with the deal; Michael Ashby, chief executive of Network Systems will run the networking company after it is merged into StorageTek; and Storage chief financial officer Greg Tymn expects merger charges from the deal with Network Systems of $5m to $10m and probably toward the high end of that figure, Reuter heard in the conference call.
