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CoSine Seeks New Blood

Hot on the heels of a failed merger and a stock market delisting, troubled switch vendor CoSine Communications Inc. (OTC: COSN.PK) is on the prowl for someone to buy.

The companys board has approved a plan to go on the acquisition trail, CoSine CEO Terry Gibson tells NDCF. “We’re considering a lot of different options,” he says. “It could be a number of companies.”

The leap into the M&A space is the latest turn in a roller-coaster ride for CoSine since it announced poor second-quarter results last year. This was followed by layoffs and the termination of the lease on its Redwood City, Calif., headquarters (see CoSine Losses Grow in Q2, CoSine Cuts to the Bone, and CoSine Posts Q3).

Earlier this year, telecom equipment manufacturer Tut Systems Inc. (Nasdaq: TUTS) offered $24.1 million for the company (see Tut Takes On CoSine). But in May, CoSine broke off the deal, saying it was unlikely to gain shareholder approval (see Tut Responds to CoSine ).

This was followed by a Nasdaq delisting, although the company’s stock is now being traded on the OTC marketplace under the ticker symbol COSN.PK (see CoSine Announces Delisting Notification).

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