Wall Street is convinced that something is up in the network switching and routing world, with the names AT&T Corp, Cabletron Systems Inc and StrataCom Inc on everyone’s lips, but no-one is quite sure what is up. The main gossip is that AT&T wants to buy Cabletron, and while Cabletron says the gossip is unfounded, it wouldn’t necessarily know. AT&T was a lot less dismissive, saying only that it has been looking at various partners to position itself better for the coming information age. StrataCom Inc was caught in the backwash because investors feared that a Cabletron deal would derail the relationship between AT&T and the network switch maker – until StrataCom pointed out that while AT&T is a major customer Stratacom’s wide area Frame Relay switches do not compete directly with Cabletron’s local area hubs. Some analysts thought a manufacturing contract with Cabletron was more likely than a takeover as AT&T looks to replace its family of hubs.
