|
Siemens' $1.7B U.S. deal
|
 |
March 4, 1999: 5:48 a.m. ET
Report of data networking venture boosts German giant's stock price
|
LONDON (CNNfn) - German engineering giant Siemens is planning to invest 1.6 billion euros ($1.7billion) in a new U.S. venture, according to newspaper reports Thursday.
Siemens is planning a raft of measures to beef up its activities in data networking. These include: buying two privately-held companies, investing in a third and employing additional senior executives, the New York Times reported.
In addition, the newspaper said the German electrical giant is in preliminary talks with 3Com (COMS) to pay $1.2 billion for the U.S. group's unit that sells networking equipment to telephone companies.
Siemens is expected to pay $300 million in cash for privately-held Castle Network Inc. and $240 million in cash for Argon Networks Inc.
Siemens (FSIE) is also set to take a $30 million stake in California-based Accelerated Networks.
Siemens' officials declined to comment on the report, but a press conference is scheduled for Monday.
The report boosted Siemens shares. In Frankfurt they rose almost 2 percent to 53.36 euros.
|
|
|
|
|
|
Siemens
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
