ERICSSON: NEWBRIDGE DENIES BUY-OUT TALKS
(Nyhetsbyr†n Direkt) - STOCKHOLM (Direkt) 1999-11-15 Canadian Newbridge Networks on Monday denied it has been in talks with Ericsson or Alcatel about a possible buy-out, according to Bloomberg News. The denial came on the heels of several days of intensive speculation of a buy-out or takeover, for example in the Globe and Mail on Friday, caliming that Ericsson has shown renewed interest for Newbridge and that Alcatel would put a rival bid.
Newbridge Networks admits that the company has been in talks with two European telecom companies. However, these talks have been about a reselling of Newbridge Networks' products. However, there hasn't been any agreement, according to the company's spokesperson John Lawlor.
Lawlor also said that Newbridge has been in talks with Ericsson and Alcatel before, but that these discussions were not about a takeover of Newbridge. Ericssson, for its part, is more prone to buy a minority share of Newbridge than to acquire the entire company, wrote the Globe and Mail in a sequel article, according to Bloomberg News, citing a source within Ericsson. Ericsson is interested in Newbridge Network's ATM technology and to acquire a minority share would be a cheaper way to get access of this technology, according to the article.
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