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TOP STORIES FOR WEDNESDAY, MAY 26, 2004
  PeopleSoft Says No to Oracle, Again
  Comcast to Offer Phone Service
  Upping the Ante in the Router Market


PEOPLESOFT SAYS NO TO ORACLE, AGAIN
The PeopleSoft Board of Directors has, for the fourth time, rejected
the takeover bid from Oracle. Oracle, which originally offered $16 a
share and eventually upped its bid to $26 a share, recently lowered the
bid to $21 a share, saying the lower bid more accurately reflected the
value of PeopleSoft after changes in the market. PeopleSoft's board,
however, said the bid is "inadequate," an opinion supported by recent
reports from Citigroup Global Markets and Goldman Sachs. PeopleSoft
also disputes the proposed takeover on antitrust grounds, noting that
the U.S. Department of Justice has filed a lawsuit to prevent the deal,
saying it would be an anticompetitive merger. PeopleSoft also announced
a settlement in a lawsuit brought by shareholders who objected to the
company's customer assurance program, which guaranteed payments to
customers in the event of a takeover under certain circumstances. The
plaintiffs in that suit alleged that the program lowered the value of
the company.
ZDNet, 26 May 2004
http://zdnet.com.com/2100-1104-5220539.html

COMCAST TO OFFER PHONE SERVICE
Comcast has announced plans to offer voice-over-Internet protocol
(VoIP) phone service to all of its 40 million subscribers by the end of
2006. The company said its various pilot programs of the service have
gone better than expected. The announcement marks the latest round in
the ongoing competition between cable and phone companies, which are
increasingly looking for customers in each other's markets. John
Billock of Time Warner Cable, the country's second-largest cable
company behind Comcast, said the reason for the overlap is simple:
"Customers want one company and one bill." Comcast joins other cable
companies, including Time Warner Cable and Cablevision, that already
offer telephone service and report strong demand for their one-price
offerings. Cablevision, for example, offers unlimited service in the
United States and Canada for $34.95 a month. Phone companies will
likely have trouble matching prices with cable companies, although many
telephone providers argue that their service is more reliable and of
higher quality.
Wall Street Journal, 26 May 2004 (sub. req'd)
http://online.wsj.com/article/0,,SB108552125681821065,00.html

UPPING THE ANTE IN THE ROUTER MARKET
A new router from Cisco Systems promises to shake up the router market
with the possibility of transferring data at rates as high as 92
terabits per second. Cisco is the leader in the router market but is
feeling increased pressure from Juniper Networks. Cisco's new routers
can, individually, transfer data at 1.2 terabits per second or can be
combined in groups of as many as 72 to achieve the maximum transfer
rate. According to Chris Nicoll of research firm Current Analysis,
Juniper's routers individually are at least as fast as the new Cisco
router but cannot be arranged in clusters as large as Cisco's,
resulting in lower maximum transfer rates. Cisco claimed the new router
will be easier to manage than older routers, a characteristic Nicoll
said Juniper has demonstrated with its routers. The new routers, which
reportedly cost $500 million to develop, will cost $450,000 each, with
a typical high-end installation costing $40 to $50 million, according
to Cisco.
New York Times, 25 May 2004 (registration req'd)
http://www.nytimes.com/2004/05/25/technology/25cisco.html

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