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Technology Stocks : Newbridge Networks

NN 14.32

+1.1%

Jan 9 9:30 AM EST

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To: zbyslaw owczarczyk who wrote (11981)	6/23/1999 8:01:00 AM
From: Peppe	Read Replies (2) of 18016

ZO, Here's what CSFB has to say: NN To Purchase Stanford Telecomm and Retain the Broadband Wireless Portfolio FY99E: $0.62, FY00E: $0.89 · In a complicated transaction, NN yesterday announced it was acquiring Stanford Telecom (STII) in an all stock deal, with a net cost to NN of approximately $280 million dollars ($490 mm in total less $210 mm it expects to reap when it sells off parts of STII). · NN only acquiring those assets that fit in with their existing Broadband Wireless unit. Acquisition is contingent on divestiture of Stanford's remaining business units within a specified price range. The deal is expected to close by October. · NN suggests the acquisition will breakeven during fiscal 2000, turning accretive during fiscal 2001 and beyond. We are still investigating this as it appears STII's broadband unit is loosing money and would need significant sales leverage to meet NN's goal. · If successful, Stanford's Wireless Broadband Unit, in conjunction with their existing LMDS broadband wireless solution could lead to significant incremental revenue opportunities. Cheers, Peppe

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