Alcatel targets Newbridge: sources
TUESDAY, NOVEMBER 09, 1999 1:53 AM
- Canadian Press
TORONTO, Nov 09, 1999 (The Canadian Press via COMTEX) -- France's Alcatel is stalking Newbridge Networks with a potential takeover that reflects the merger mania gripping the world's leading telecommunications equipment providers, sources told the Globe and Mail.
A Canadian investment banker who works with Newbridge said : ``Alcatel's certainly kicking tires, but I don't know if they are the partner that Newbridge needs. Alcatel has lost some steam in its own lines and is looking to kick-start its business,' the Globe reported today.
Newbridge, best known for making switches that let telephone carriers put voice, data and video traffic on a single network, saw its shares rise $1.48 to $24.40 on the Toronto Stock Exchange Monday but still far below their 52-week high of $60.50 reached in January.
Alcatel climbed $1.56 US to $32.56 on the New York Stock Exchange after hitting a 52-week high of $32.62 earlier in the day.
Newbridge did not return calls, and a spokesman with Alcatel's U.S. operations declined to comment.
Speculation about an Alcatel-Newbridge deal increased after Bloomberg News cited a column written by U.S. columnist Dan Dorfman saying the French company was considering offering $24 US to $25 a share or $4.3-billion for Newbridge. (The Globe and Mail)
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