Force10, which makes switching equipment that is faster and more compact than many competitors' products, has become one of the most watched young companies in Silicon Valley. Sources close to the company have said it is planning an IPO that would value it around $1 billion.
But Force10 still has not filed for an IPO. Susquehanna Financial Group LLLP analyst Joe Chiasson argued that the current market is unlikely to accept a $1 billion valuation for a company with annual revenue of around $120 million.
"Until they file for that IPO, anything is possible," said Chiasson, who speculated another suitor could approach Force10 with a $500 million offer, based on current deal valuations in the telecommunications equipment sector.
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