=DJ Takeover, Earns Rumors Drive Newbridge Higher
By Stuart Weinberg
TORONTO (Dow Jones)--Shares of Newbridge Networks Corp. (NN) are up 12% Wednesday
because investors are anticipating strong third-quarter results and an "announceable
transaction" in early February, according to an analyst.
Rob MacLellan, analyst at CT Securities, told Dow Jones that sources have indicated to
him that the purchase of Newbridge could be announced in two weeks. MacLellan said he
didn't know who the buyer would be, but he named Siemens AG (G.SIE) as the most logical
suitor, and said Tellabs Inc. (TLAB), another potential suitor, has "slid down the list"
of potential buyers. In November, Newbridge hired an adviser to explore strategic
options, a move that was interpreted as a sign that the company was up for sale.
Rumors that the Newbridge plans to spin off its digital subscriber line (DSL) division
- originally reported on the Web site of The Financial Times - are false, MacLellan said.
"The company is indicating to me that there is no truth to (the DSL spinoff scenario)
whatsoever," he said.
Sarah Miller, Newbridge spokeswoman, declined to comment on the DSL rumors and the
takeover rumors.
In NYSE trading Wednesday, the stock is up 2 7/8 to 26 11/16 on about 2.5 million
shares.
(MORE) DOW JONES NEWS 01-26-00
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