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Technology Stocks : Newbridge Networks

NN 12.19

+7.3%

2:23 PM EST

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To: Peppe who wrote (5458)	7/8/1998 5:37:00 PM
From: Rhys Roberts	Read Replies (1) of 18016

Peppe, <TM just won't sell and unless he decides to nothing can happen.> TM, according to the Ottawa Citizen, owns 21% of NN. That's not exactly a controlling stake. If he decides to hold onto his shares, it is conceivable that LU or someone else can acquire controllong interest. Actually he own from what I remember is along the lines 22%, but newbridge itself hold 10%(I believe). Old chums of TM probably (original investors) account for nearly 5-7%. Employees controls a hefty stake of options which NN controls the voting rights on. so he probably can get to about 40% without any real worries. <Cisco has yet to acquire ONE top level member of NN.> I don't see the relevance of that statement. Senior staff at NN is in Canada and CSCO is in Silicon Valley. The most senior member of Newbridge's staff in the US was their VP sales and he just resigned !! (Maybe he's joining CSCO <vbg>) The rumor around here is that it was a resign or else option. some Baby bell company refused to do business with him because of trust dificulties. Thats just rumor. People are being headhunted all the time in Kanata. If a takeover were iminent I would think we might see some flight of senior execs, so they could be assured of a well paying job somewhere. Distance doesn't matter, If you remember CSCO bought Skystone (They made sonet equipment) a small Kanata outfit here last summer for nearly 80 mill. Borders and distance don't matter in the high tech industry the technology is the all important variable. LU wont get ASND(or NN for that matter) for a while. LU has a deal with ATT after they were spun loose that LU can't use Stock in any takeover or acquisitions for 2 years that dosen't expire until October. So If your smart buy some LU and watch the stock fly on take overs at the end of this year! Siemens might buy NN but this is incredibly unlikely, for chats on this goto the Siemens board. All in all I think selling NN in the short term (3-6 months) won't happen but 1 or 2 bad more bad quarters and who knows? Regards Rhys

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