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No. of Recommendations: 0
While I already own Cisco and am very happy with the returns I have received, I am nervous about the fact that they just put into place a poison pill. I heard on CNBC that John Chambers might be a little nervous about the high valuation that Cisco currently carries and in the event of a market downturn Cisco could be a target of a hostile takeover. Given that Cisco and Lucent are close in size it's unlikely that in October when Lucent is able to acquire companies thru the issuance of debt that Lucent will takeover Cisco. There are other potential suitors that I have heard of such as BCE, which is the holding company for Bell Canada and who owns a stake in Northern Telecom,and GE is also a potential suitor. With Chambers stating that growth is slowing due to the fareast crisis and the growing competition in the networking field, I think to Cisco is not going to have the growth potential that it once had. I think that any thought given to making Cisco the 8th cash king should take these things into account.
-hughs
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