ÿÿÿ LARRY POLLOCK , I am so glad you quoted Jill Vardy's column
of today because that gives me an opportunity to read it to you,
( sort of a bedtime story ).
ÿ Analysts say the deal will have little impact
ÿÿÿÿ on Newbridge, which competes with both
ÿÿÿÿ Nortel and Tellabs, but not in the optical
ÿÿÿÿ networking side of the telecommunications
ÿÿÿÿ business.
End of story,
goodnight,
<vbg>
TA
PS: In regards to the other bedtime story, Jill Vardy's conclusion based
on.....what facts? .......that NN's fall yesterday was due to the TLAB/NT
deal ( rather than to simply the Naz tanking, merrily along ,
with NT,TLAB and CSCO ), is a story I will read to you
tomorrow night. ( Just in caseÿ you are one of the " nervous investors "
Jill was alluding to in her post).I am certain it will
immediately lull you back to sleep.ÿ
----------
To: Frodo who wrote (17034)
ÿÿÿÿ From: LARRY POLLOCK
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Tuesday, Feb 15, 2000ÿ 1:54 PM ET
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Respond to Post # 17047 of 17067ÿ
ÿÿÿÿ From today's Financial Post:
ÿÿÿÿ For Tuesday, February 15, 2000
ÿÿÿÿ Newbridge squeezed by
ÿÿÿÿ Nortel-Tellabs dealÿ
ÿÿÿÿ Investors grow nervousÿ
ÿÿÿÿ By JILL VARDYÿ
ÿÿÿÿ The Financial Post
ÿÿÿÿ OTTAWA - As market rumours continued
ÿÿÿÿ yesterday that Newbridge Networks Corp. is
ÿÿÿÿ pushing to sign a takeover deal by next week
ÿÿÿÿ the company stayed silent.ÿ
ÿÿÿÿ Newbridge will announce its third-quarter
ÿÿÿÿ results on Feb. 22 and analysts believe it wants
ÿÿÿÿ a deal in place by then.ÿ
ÿÿÿÿ News yesterday that Nortel Networks Corp.
ÿÿÿÿ and Tellabs Inc. have signed a cross-licensing
ÿÿÿÿ agreement initially sent Newbridge stock down
ÿÿÿÿ -- it was off 8% at one point -- but it
ÿÿÿÿ rebounded later in the day to close up 10c at
ÿÿÿÿ $48.75.ÿ
ÿÿÿÿ Analysts say investors are growing fearful
ÿÿÿÿ Newbridge may be having difficulty
ÿÿÿÿ concluding a deal that would see French
ÿÿÿÿ telecom company Alcatel SA, or some other
ÿÿÿÿ big networking company, buy it. Rumours flew
ÿÿÿÿ last week that a purchase agreement with
ÿÿÿÿ Alcatel would be announced by last Friday.ÿ
ÿÿÿÿ "According to some people, it was supposed
ÿÿÿÿ to happen Friday, and it didn't. And it doesn't
ÿÿÿÿ seem imminent today. So people are saying,
ÿÿÿÿ Let's take a bit of money off the table," said
ÿÿÿÿ Duncan Stewart, technology analyst and partner
ÿÿÿÿ at Tera Capital Corp. "Every day that goes by,
ÿÿÿÿ people become more worried that it's not going
ÿÿÿÿ to happen."ÿ
ÿÿÿÿ The licensing agreement between Nortel and
ÿÿÿÿ Tellabs allows each company to access the
ÿÿÿÿ other's optical networking patent portfolios.
ÿÿÿÿ Nortel will get royalty payments as a result of
ÿÿÿÿ the deal, but no other details were provided.ÿ
ÿÿÿÿ Analysts say the deal will have little impact
ÿÿÿÿ on Newbridge, which competes with both
ÿÿÿÿ Nortel and Tellabs, but not in the optical
ÿÿÿÿ networking side of the telecommunications
ÿÿÿÿ business.
ÿÿÿÿ Some investors appeared to conclude the
ÿÿÿÿ alliance may reduce the number of companies
ÿÿÿÿ interested in buying Newbridge, which
ÿÿÿÿ announced on Nov. 18 that it is entertaining
ÿÿÿÿ takeover offers.ÿ
ÿÿÿÿ "Every time a potential bidder joins or leaves
ÿÿÿÿ the party, the stock moves up or down like a
ÿÿÿÿ yo-yo," said one analyst, who asked not to be
ÿÿÿÿ named.ÿ
ÿÿÿÿ Nortel said it will spend $260-million (US)
ÿÿÿÿ and hire 3,400 people to boost its production
ÿÿÿÿ of fibre-optic equipment.ÿ
ÿÿÿÿ Nortel predicts its fibre-optic business will
ÿÿÿÿ jump by 30% in 2001. To help meet the
ÿÿÿÿ demand, the company will spend about
ÿÿÿÿ $64-million (US) on two facilities in England,
ÿÿÿÿ $102-million (US) in Ottawa (creating 1,000
ÿÿÿÿ jobs in that city alone) and another $84-million
ÿÿÿÿ (US) in Montreal (with another 1,000 jobs
ÿÿÿÿ created).ÿ
ÿÿÿÿ Meanwhile, the agreement between Nortel
ÿÿÿÿ and Tellabs will strengthen the long-term
ÿÿÿÿ competitive position of both companies, the
ÿÿÿÿ firms said yesterday. Typically, these
ÿÿÿÿ agreements generate some cash for the patent
ÿÿÿÿ holders -- Nortel in this case -- and prevent
ÿÿÿÿ legal battles from arising as firms bring out
ÿÿÿÿ similar technologies. |
