As expected, it didn't take long for the buyout rumours to surface. This is so predictable. Of course the promoters of this rumour don't tell you the real reason for stating their case of a buyout -- they own Newbridge stock. I've stated it before and I'll repeat it again, no one is going to buy Newbridge, and certainly not for CND$4 billion.
There are just too many problems with Newbridge, and the company's core product, the very product it has staked its future on, ATM, has a dark cloud over it. The explosive growth it was suppose to generate has not, and likely will not, materialize.
Even if the company were to be put up for sale, who would buy it? Not the big North American networkers, they don't need Newbridge, and the Europeans have stated that they are not interested. Look at Cabletron, rumours of a takeover have been around most of the year, and yet, nothing has happened.
There is no legitimate argument for buying Newbridge. The value argument is non-existent, and the takeover argument is being made by liars, such as certain fund managers who have a vested interest. |
