Stock Watch: Alteon Stumbles After Swedish Investment

Alteon WebSystems Inc. (Nasdaq: ATON) fell 1 9/16 to 146 3/16 Monday after the company said it would buy Bluetail AB, a Swedish Internet startup, for about $152 million in stock.

Bluetail manufactures and markets what it calls “content-intelligent” traffic management software for high-volume Web computing environments. The software can identify different types of Web traffic and process it according to preference.

The acquisition will result in non-cash charges of about $12 million per quarter, Alteon said. Alteon, which makes Internet software, has agreed to be acquired by Nortel Networks.

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