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June 5, 1997updated 05 Sep 2016 12:51pm

CABLETRON SLIDE HIT FOUNDERS HARDEST

By CBR Staff Writer

When shares of networking company Cabletron Systems Inc lost a third of its value on Tuesday following a profit warning (CI No 3,174), investors weren’t the only ones feeling the sting. The company’s two founders, chairman Craig Benson and chief executive Robert Levine lost a whopping $605m of their combined net worth, according to a Reuters report. After the stock slide, the two – who collect salaries of $52,000 a year and reportedly don’t receive stock options – held a joint stake in the company that was valued at $1.18bn. Cabletron on Tuesday warned that its earnings for the first quarter would amount to roughly $0.37 per share, far from the $0.50 Wall Street wanted.

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