Cabletron finishes spinoff plans; shuts down
Cabletron Systems will finish its spinoff of its Riverstone subsidiary and will launch Enterasys Networks as an independent public company. Both are slated for Aug. 6, when Cabletron Systems will be shut down and no longer trade.
Cabletron, a holding company for networking and telecom firms, announced the four-way split in February 2000. Its intent was to form four independent operating companies — Riverstone Networks, Enterasys Networks, Global Network Technology Services and Aprisma Management Technologies — to focus on the service provider, enterprise e-business, professional services and infrastructure management markets, respectively.
As of Aug. 6, only Riverstone, which went public in February, and Enterasys will exist. GNTS will be sold or "otherwise disposed of," the company says. Aprisma will operate as an independent subsidiary of Enterasys with an eye on spinning off as an independent public company by Dec. 31. Cabletron will shut down.
Under the deal, Cabletron shareholders will get two shares of Enterasys Networks and about 1.02 shares of Riverstone Networks for every two shares of Cabletron stock.