As we all sit or stand and wait for the non farm payroll report at 8:30 this morning... there is a interesting article in the Ottawa citizen talking about Newbridge and Siemens. Sorry I can't post it due to problems at the paper.
several quotes from the article...
"Mr Lutz also made it clear that while Newbridge will probably announce the first of several small acquisitions this month, it has no interest in billion-dollar deals that hit the bottom line."
D.L. Leslie, manager of corporate communications for Siemens Canada said next monday's announcements will increase Siemens' strength in networking buy not detract from "our very strong and continuing partnership with Newbridge"
A quote from Lutz "we are not contemplating life without Siemens"
Mr Lutz said Newbridge believes it has the critical mass of technology, engineering and sales strength to go it alone. And having been burned by failed takeover ventures in the United States, it may be reluctant to join any Siemens offensive.
The 3Com networking products, like the UB Networks products that Newbridge acquired two years ago appear to be losing their competitive edge against the offering of Cisco Systems, the industry leader.
Mr Lutz made it clear in a conference call with analysts that he considers Cisco and Ascend as the major competition and is preparing new product aimed at the booming internet market.
Siemens faces a tough battle in its efforts to gain ground in data networking, terrain dominated by is U.S. counterparts, analysts said.
If the reports are true, it "woould be a strong development for Siemens data communications business," said Peter Knox, an analyst at Commerzbank Global equities. But "theyare coming from behind, not only compared with U.S. companies, but with Alcatel, especially in light of its purchases this week."
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