Thanks for the WIC reference; here's the disclaimer:
CA;NSX
Page 1 of 2 Sequence Number : 6535 Story Date : 99/02/11
1 18:09 T =Newbridge Stk Ends Down -2: LMCS Pact With MaxLink Solid
Last August, WIC Connexus, which is a subsidiary of broadcaster WIC Western
International Communications Ltd. (WIC.B), announced awarding the LMCS pact to
Newbridge Networks Corp. (NN) and Newbridge partner Alcatel Alshtom Cie.
Generale d'Electricite (ALA). The pact was valued at between C$450 million and
C$500 million.
A spokesman at WIC Connexus declined to comment on the status of the
company's pact with Newbridge.
Last August, Newbridge also obtained a similar pact to supply LMCS equipment
to closely held MaxLink Communications Inc., which also plans to build an LMCS
network in Canada. This pact hasn't been questioned.
Indeed, Joel Bell, MaxLink deputy chairman, said this pact with Newbridge
remains solid and the network is still scheduled to be up-and-running by the
middle of this year.
Mark Lucey, telecommunications analyst at Kearns Capital Ltd., said he heard
the rumors about Newbridge possbily losing the LMSC contract with WIC Connexus,
but he didn't know if those rumors were true.
At the same time, Lucey downplayed the significance of the loss of the WIC
Connexus LMCS pact.
He said he didn't include the LMSC contracts as part of his financial model
for Newbridge, because of uncertainty about the rollout of the planned networks
and uncertainties about ultimate demand for the services.
Other analysts echoed this view. However, they also said a loss of the LMCS
contract with WIC Connexus would be a blow to Newbridge's stock in the short
term, since it follows Newbridge's earnings warning late last week.
-By Ben Dummett; 416-943-7807; ben.dummett@dowjones.ca
(END) DOW JONES NEWS 02-11-99
06:09 PM |
