The Thread Formerly Known as No Rest For The Wicked Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Tim Luke who wrote (73412)	11/17/1999 12:21:00 PM
From: CrazyTrain	Read Replies (4) of 90042

Newbridge quiet on Ericsson's takeover comments By Susan Taylor OTTAWA, Nov 17 (Reuters) - Canada's Newbridge Networks Corp. <NNC.TO> <NN.N> refused comment on Wednesday after Swedish telecoms equipment maker Ericsson <LMEb.ST> said it is not opposed to making large acquisitions such as a takeover of Newbridge. Ottawa-area telecoms equipment maker Newbridge has been seen as a takeover target since issuing its sixth earnings warning in 10 quarters on November 2 and announcing the resignation of President Alan Lutz. The company's stock was subsequently battered by investors, but takeover rumors have helped it regain some ground. Shares in Newbridge added C$1.45 to C$28.70 on the Toronto Stock Exchange in early trade on Wednesday and 3/4 to $19-5/8 on the New York Stock Exchange. Newbridge has played down media speculation that points to Ericsson and France-based telecoms group Alcatel Alsthom <CGEP.PA> as interested in buying the company. Newbridge spokesman John Lawlor said on Wednesday he could not comment on remarks from Ericsson that it would consider large acquisitions of firms the size of Newbridge. "If we find an acquisition target which is big, then we will of course present it to Ericsson's board," President Kurt Hellstrom told Reuters after an analysts' meeting in London earlier on Wednesday. Responding to a question on what would constitute a large acquisition, Hellstrom said: "If you're talking about Newbridge, then that would be a large acquisition, while ACC was a smaller acquisition." Ericsson bought California-based Advanced Computer Communications (ACC) from Newbridge in 1998 for $285 million. The world's third-largest maker of mobile phones and the biggest producer of mobile systems, Ericsson has a strategy of buying small- and medium-sized companies but said it would consider a large firm that was an interesting opportunity. "Ericsson may simply be leaving the door open and may have somebody else in mind, they may have nobody in mind," said Rob MacLellan, an analyst at CT Securities in Toronto. "I wouldn't read too much into it." Newbridge denied in an interview with Reuters on Tuesday recent media reports that its board was told it would review takeover offers when it meets later on Wednesday and Thursday. The company will consider an action plan to address sales problems. ($1=$1.46 Canadian) ((Susan Taylor, Reuters Ottawa Newsroom, 613-235-6745, fax 613-235-5890)) REUTERS * end of story *

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next