Hayes pursues takeover trail

Hayes Microelectronics is set to make its second acquisition in two months. Sources close to the modem maker confirmed it has been in merger talks with motherboard manufacturer Micronics for several months, and an agreement is expected within weeks. Hayes is understood to be interested in Micronics? communications technology.

Hayes bought fellow modem maker Cardinal last month. It has a stated strategy of merging with public companies to increase its value and attractiveness to investors before it goes public. Although it has not put a timescale on an initial public offering, analysts expect it to happen early next year.

Two years ago, privately held Hayes emerged from Chapter 11 bankruptcy protection, but since then it has steered a sound financial course. Micronics lost $13.3 million in the last fiscal year on sales of $171.3 million and it lost $2.7 million in its last quarter. It blamed this figure on component supply problems.