Newbridge in takeover talks with Alcatel - report
TORONTO (Reuters) - France's Alcatel Alsthom Cie Generale d'Electricite is in ''serious'' talks to buy struggling Newbridge Networks Corp. , which has opened the door to a takeover, the Canadian Globe and Mail newspaper reported Thursday.
Paris-based Alcatel, a telecoms equipment maker which earlier this month declined to comment on the possibility of a match with telecoms gear developer Newbridge, could unveil the news as early as Tuesday, the Globe said, citing unidentified industry sources.
Alcatel is reported to be the only serious contender after two others -- Sweden's Telefon AB L.M. Ericsson and Germany's Siemens AG -- dropped out of talks, the paper said.
''They're in serious discussions,'' an industry executive was quoted as saying.
Newbridge, which is set to report its latest results on February 22, has issued profit warnings in six of its last 10 quarters.
Ottawa-area Newbridge, which in recent months had hired an investment banker to advise it and effectively hung out a ''for sale'' sign, is expected to fetch between $40 and $45 a share, said analysts in the newspaper report.
Shares of Newbridge Wednesday closed at $34-9/16 on the New York Stock Exchange and at C$49.50 in Toronto. |
