RSTN has been groomed for a buyout ever since Oscar and his boys took the company over. Oscars team has a history of building value in a company and selling to the highest bidder.
When Oscar came on board he knew the company was vulnerable to a cheap buyout. He needed to buy time for the company until they furthured their new products and added additional customers. I truly didn't believe Oscar was as smart as he was until I saw how Oscar and Barnes used the financials and Pink Sheets to buy that time. When Barnes was moved to the position of Executive Vice President and Chief Strategy Officer, I knew that they were getting ready to sell the company. Barnes is a great negotiator on the sale of companies and has closed soom good deals in the past. Coupled with the fact that the board granted Oscar a bonus if the company changes hands made me believe that the writing was on the wall.
Now you might ask why is this a good time to sell the company. Considering that this a breakout year for metro ethernet and RSTN is ranked third in the industry, RSTN has much more leverage to negotiate a good price for the company than many people believe. There are many enterprise ethernet switch companies on the market, but few proven carrier class ethernet switch companies on the market that have existing customers and strong intellectual property. One thing I have believed all along is that RSTN is setting the standard with their modular software.
I've bought many shares of RSTN and have thrown them into my drawer waiting for the payoff, and that payoff is very near. I think the buyout price might just surprise a few people. Good luck to the longs that hung in for the ride.
It makes perfect sense for Ericsson to buy Riverstone following the acquisition of Marconi. Don't forget Marconi resells Riverstone switch. When Marconi lost the BT deal, it hurt both Marconi and Riverstone. Alcatel got that deal and it helped it jump to #2 ahead of Rstn.
For those of you thinking that Huawei would need to buy Riverstone to get into the India market, you must be kidding. Huawei has more engineers in India currently than Riverstone has total employees.
If a buyout is to occur, I'd put my money on either LU (just to add to their woes) or JNPR (which would be a total reverse of their strategy).
Seriously.....stop making stuff up. Here's a list of competing vendors (only the ones with MEF certification)and their products. This will probally help your research before you make another wild claim.
Hello to all,
Well I'm not sure I am "buying" into the buyout bit but the writing has been on the wall for some time now.
Bidding war - that would be nice. Let's see..who are the players in that kind of war.
Huawei who is looking to get into the india market, and could now show some homegrown appeal.
Lucent, who has been incorporating our toys in several recent depolyments, and is using the 15000 series in the new 3G deployments for backhaul as well as IMS deployments.
Nortel(Snortel) who released the Neptune failure this week and has all but said it is giving up on a multiservice edge platform in house- Go back and read the press release...It all but says Nortel will need to aquire if it wants a piece of the ethernet edge.
Ericcson...Well I don't get this one but some here believe this has legs. They just bought Marconi?????
Juniper- who has hired multiple Stone techies and has been looking to develop there own homegrown device for some time. Why not just but the ethernet edge devices that they already worked on at the stone.....Hit the ground running and continue to sell into their biggest reseller Lucent.
Ah yes the ending tag line from Brass
"time Will Tell"
Luck to all longs
Holding and possibly adding.
Tellabs is definitely on the list of potential bidders ... Merill Lynch was out with a research note in September saying Tellabs was looking to make an aquisition. I'll try to post the ML note tonight.