Cabletron Systems Inc has confessed that its intervention in the agreed takeover of Chipcom Corp by 3Com Corp is a spoiling operation, and has also disclosed that it has spent $15m buying about 2.8% of Chipcom’s equity in the market. Robert Levine, president and chief executive of Cabletron, told Dow Jones & Co that he has by no means decided whether he wants to take over Chipcom, but we want to be sure we have a say in what happens to Chipcom and make sure it is in the best interests of Cabletron shareholders, he said. I’m not sure if I want to acquire them for their asset base and customer base, or whether I just want to make Benhamou have to walk through Levine to get Chipcom, he said. He agreed that there weren’t important business synergies with Chipcom’s product range or technology, but added that Chipcom’s customer base and its extensive distribution agreements with IBM Corp could be attractive. Cabletron will use the next 30 days, while it waits for Federal Trade Commission clearance, to decide what to do. It hasn’t contacted Chipcom or 3Com to discuss its moves, and it has not retained an investment banker.
