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When two big companies come together as one, there are more integration issues than one could possible imagine and it's not surprising that there is generally a period of prolonged pain immediately after large mergers.

For example, imagine if you had a big telco company like, say, Nortel, and it acquired a data networking company like, let's pull one out of the hat and suggest Bay. And imagine if the sales guys in the telco side of the world typically only earned about half as much as their data networking peers. You can imagine that there might be a certain degree of tension and friction until things were sorted out.

Of course, there is the question of exactly how do you sort it out, but that's not an issue for a Tabloid reptile to contemplate.

While on the subject of big telco companies, many have been suggesting for some time that Lucent will follow Nortel's lead and snap up a big data networking vendor as well. What most haven't realised is that legal restrictions have effectively stopped Lucent from buying a significantly sized company. However, come October first it will be the second anniversary of Lucent's spinoff from AT&T and those restrictions will end.

Tabloid doesn't think it will take long for the big telco to make a move and 3Com and Cabletron have been rumoured to be the likely targets.


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