elmatador ,Newbridge CEO May Be Open to Ericsson, Alcatel Bids, Globe Says
quote.bloomberg.com
Kanata, Ontario, Nov. 15 (Bloomberg) -- Newbridge Networks
Corp. Chairman and Chief Executive Terence Matthews may welcome a
takeover bid for Canada's No. 2 phone-equipment maker from
France's Alcatel SA or Sweden's Ericsson AB, the Globe and Mail
newspaper reported, citing analysts and a former Newbridge
executive. ``I think Terry wants out. I think he knows he's lost
the game,' said Jim Marshall, Newbridge's former head of
investor relations, adding that the company's board is likely to
obey Matthews' wishes. Analysts will examine the company's
earnings report this Thursday for Newbridge's plan to boost sales
after it warned last week that sales and earnings this quarter
will fall short of expectations.
A Globe report yesterday said that Ericsson, the world's
third-largest maker of cellular phones, wants access to
Newbridge's most important technology -- asynchronous transfer
mode, or ATM, which controls traffic on the Internet -- and is
more likely to buy a minority stake in the company than purchase
Newbridge outright.
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