I still think about ERICY but...
From the Globe and Mail
Alcatel looks to North America
by Simon Tuck - Thursday, February 3, 2000
Ottawa -- Alcatel SA of France says it plans to make more investments in North America so that it can take business away from its key competitors, a strategy that analysts say could bolster Newbridge Networks Corp.'s appeal as a potential acquisition.
Alcatel, the Paris-based giant that is seen by many as the leading candidate to buy Kanata, Ont.-based Newbridge, says it needs to do a better job of taking contracts away from industry leaders Nortel Networks Corp. of Brampton, Ont., Lucent Technologies Inc. of Murray Hill, N.J., and Cisco Systems Inc. of San Jose, Calif.
"We think we are in a good position to challenge them," said Olivier Houssin, vice-president of Alcatel's telecom division. "Our aim is to have several dozen customers or reference sites with big North American customers by the end of the year."
Alcatel has been trying to make a serious foray into the lucrative U.S. market over the past 18 months by spending $9-billion (U.S.) on six telecommunications firms, and Mr. Houssin said more investments are on the way.
Nial Hickey, a company spokesman in Paris, said he couldn't comment on whether Alcatel has finished its shopping spree or if it's interested in Newbridge. "It's not a debate we get involved in," he said. "You never say never."
Newbridge officials have refused comment on takeover talk since the communications equipment maker announced in November that it's for sale.
Analysts said yesterday that Mr. Houssin's comments don't necessarily apply to Newbridge because he was speaking largely about the market for corporate telecommunications equipment. Newbridge specializes in selling gear -- specifically its asynchronous transfer mode [ATM] switching technology -- to large carriers such as telephone companies, a gap in Alcatel's portfolio.
But analysts said the company's overt aggression and eye for North America may be significant. "It would fall in line with their supposed discussions with Newbridge," said Robert MacLellan, a technology analyst at CT Securities Inc. in Toronto.
Newbridge shares fell $1.50 (Canadian) or 3.2 per cent to $45.50 yesterday on the Toronto Stock Exchange. |
