August 6, 2001 3:50 PM PDT
Enterasys spins off from Cabletron
Cabletron ceased operations as a public company Monday after spinning off Enterasys and distributing to shareholders its remaining shares of Riverstone Networks.
Enterasys shares, which began the day at $13.43, increased to $13.75 by market close, while Riverstone fell 7 cents to $14.19.
The move concludes a year-and-a-half-long effort by Cabletron to break up its networking business into smaller operating companies and spin them off. Riverstone, which makes network equipment for telecommunications service providers, spun off from Cabletron in February with an initial public offering, but Cabletron retained an 86 percent stake in the company.
Enterasys, which makes network equipment for businesses, began trading Monday on the New York Stock Exchange under the symbol, "ETS." As part of the spinoff, Cabletron shareholders received one share of Enterasys for each share of Cabletron they owned.
Cabletron also distributed the Riverstone shares it owns to its shareholders on Monday. Cabletron shareholders received half a Riverstone share for each share of Cabletron they owned.
Besides Enterasys and Riverstone, Cabletron also owned Aprisma Management Technologies, which makes software for managing the health of networks; and Global Network Technology Services (GNTS), which offers consulting services for building networks.
Aprisma has become a subsidiary of Enterasys, but will spin off into its own independent company by year's end. A Cabletron spokeswoman said the company has sold off a portion of GNTS to a private group of investors, while portions of the consulting business were also transferred to Enterasys and Aprisma.