On the acquisition trail

The saga with Qwest and Global Crossing still 'arguing` over the acquisitions of US West and Frontier continued.

Last week there were several large international acquisitions each worth in excess of $1 billion, and the saga with Qwest and Global Crossing still "arguing" over the acquisitions of US West and Frontier continued. Locally, the rumours persist regarding the eventual fate of Brainware; Infiniti, despite a recent acquisition; and Selective Financial Group with its Pinnacle entity.

• we saw the delay in the listing of AfriLeisure Technologies; and a flood of shares hitting new 52-week

• lows during the week. These included Brainware, Bryant, CIH, HIX, Infiniti, Micrologix and Zaptronix.

[Local]

Local acquisitions, mergers, investments etc (see attachment).

Local Cautionary Notices (see attachment)

Local Listing calendar (see attachment)

Other local news included:

• the announcement that Silicon Graphics has decided not to have a direct representation in the country any more, while Mercury Interactive has just opened a local office

• Ukhukanya

is involved in major talks with an international PC manufacturer, as well as looking at possible ventures throughout Africa via its joint venture U-Tech with four black Namibian investors;

• and Hicor has disposed of its consumer electronic wholesale and retail divisions so that it can concentrate on its focus of becoming an IT company.

• the appointment of Stephen Rizzone, the ex-president and CEO of NetVantage, as the chairman and CEO of Ortel;

• the announcement that three top executives of International Digital Comms, recently acquired by Cable & Wireless, had resigned; and

• the announcement that Tektronix will split into two independent companies, one focusing on colour printing and imaging, and the other on the group`s measurement activities.

[International]

International acquisitions, mergers, joint ventures etc (see attachment).

Nearly 50 entries this week!

Other international news included:

• denials by Baan that it was being acquired (Microsoft was one of the associated names), and renewed confirmation by the CEO that it would remain independent;

• rumours that EarthLink Networks would be acquired by Gateway; while

• Compaq

`s Alta Vista company looks like it is selling out to CMGI;and

• the announcement that CompUSA would be shedding some 1500 jobs; as well as

• IBM cutting some 1 100 positions at its San Jose storage plant.

We saw excellent figures from Verity. Losses, however, came from AM Comms, Cabletron, HEI, Intraware, MicroAge, Micron Technology, Mondas and Tecsys.

Good numbers were recorded by 3Com, Corel (back in the black), Nu Horizons and VTech; and satisfactory ones by Cognos, Genesis Microchip, Gtech Holdings, Methode Electronics and Micron Electronics.

Mediocre returns came from Comtrex, Manugistics (revenue down, but back in the black - just), Multi-Link Telecomms and Tektronix, while very poor results came from Micronetics Wireless.

Other financial news included profit warnings from AMD (loss expected), CompUSA (charges for job cuts), Hutchinson Technology (loss expected), IMSI (restructuring charges) and Premisys; and share split announcements from GTS and OneWorld Systems.

Locally

AST (-18.7%)
Brainware (-29.8%)
Casey (-20%)
CIH (+22.2%)
Elexir (-20%)
Infiniti (-19.2%)
Micrologix (-22.6%)
Paradigm (-19%)
Selective Financial Group (Pinnacle) (+37.3%)

Internationally

Digi International (+23.5%)
ESS Technologies (+20%)
Iomega (+19.7%)
Iridium (+19%)
LTX (+24.9%)
Mapics (+28.2%)
MIPS (+19.3%)

This week sees more local IT listings, this time from Y2KTec today and Contlan Holding on Wednesday, while the date for Paradigm to list its IT interests under the INTeLLa Technologies banner has quietly slipped by with little or no comment.

Internationally, the Microsoft trial goes into another recess after what appears to have been a bad week for the organisation. It is unlikely any final rulings will be forthcoming this year, and maybe this gives enough time for an out of court settlement to be negotiated.