This tale about the NN/Siemens partnership being on the rocks just keeps coming back. Wonder where its coming from?
Newbridge suing WIC over lost contract
Tuesday, February 23, 1999
SIMON TUCK
Technology Reporter
Ottawa -- Newbridge Networks Corp. said yesterday it is suing
WIC Connexus and WIC Western International
Communications Ltd. for up to $900-million for the loss of a
major contract with the provider of high-capacity wireless services.
The claim, filed with the Ontario Court's General Division, relates
to a wireless phone network contract that Newbridge and Alcatel
SA of France thought they had won last August.
The four-year deal, worth between $450-million and $500-million,
soured after Shaw Communications Inc. gained 52 per cent of the
equity of Vancouver-based WIC last August. Shaw had an existing
relationship with Cisco Systems Inc. of California, which has since
landed the contract. The deal was announced yesterday.
Newbridge spokesman Paul Goyette confirmed that the Kanata,
Ont.-based company has asked for $350-million for breach of
contract or breach of duty, another $350-million for intentional or
negligent misrepresentation of the company's role in the project and
$200-million for breach of confidence. He wouldn't comment
further.
Newbridge issued a statement from Peter Nadeau, the company's
vice-president and general counsel: "[Newbridge] viewed the
relationship as a partnership and has given Connexus every chance
to resolve this matter before filing this claim. We've been working
with Connexus in good faith for the past two years since they
obtained their LMCS [local multipoint communications systems]
licence."
WIC Connexus president Robert Watson couldn't be reached for
comment and company employees said no one else was allowed to
talk to reporters.
The lawsuit is just the latest tempest at Newbridge as it prepares to
release gloomy third-quarter results today.
Newbridge's rocky relationship with its primary partner, Germany's
Siemens AG, now appears to be clearly limited to a single-product
arrangement as both sides are set to embark on separate shopping
sprees.
The companies at times over the past couple of years appeared to
be moving toward a more comprehensive relationship, perhaps
even a merger.
A source close to Siemens said those plans are now dead. "There is
no more partnership between these companies, except for [one
product]."
Newbridge said earlier this month that it will miss estimates for its
third-quarter profit by about 5 cents a share. |
