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Technology Stocks : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: pat mudge who wrote (11896)	6/17/1999 11:39:00 AM
From: zbyslaw owczarczyk	Read Replies (1) \| Respond to of 18016

ORONTO (Reuters) - In one stroke, WIC Western International Communications Ltd. sold two of its wireless operations to a private company and managed to settle a big lawsuit with Newbridge Networks Corp. (NYSE:NN - news) Privately held MaxLink Communications Group of Companies said Thursday it acquired WIC Connexus and WIC affiliate Regional Vision Inc. for C$50 million. Meanwhile Newbridge agreed to drop a C$1 billion lawsuit against WIC Western. MaxLink didn't spell out why the suit was dropped in its news release but Newbridge is helping MaxLink build a coast-to-coast national wireless broadband communications network, providing alternative access for high-speed communications. MaxLink would be the first company in Canada to have such a network. The lawsuit was triggered when the WIC parent company canceled a C$500 million contract for wireless communications equipment with Newbridge and partner Alcatel Alsthom of France. WIC Western owns all of WIC Connexus and 49 percent of Regional Vision. Last August MaxLink said it would buy a LocalMultipoint Communication System network from Newbridge, priced at more than C$400-million over four years. Last year WIC Western was taken over by Shaw Communications Ltd., which uses equipment from Newbridge rival Cisco Systems Inc. (Nasdaq:CSCO - news) . In late February, Newbridge filed a suit claiming WIC Western was in breach of contract when WIC changed the supply agreement to favor U.S.-based Cisco and privately held Bosch Telecom Inc. The technology is a relatively inexpensive way of providing local and long-distance phone and Internet connections using microwave frequencies to serve as a path between two buildings, or a building and a cell site. It costs less than fiber networks. MaxLink plans to start commercial operations in Ottawa in July, followed by Montreal and Calgary later this summer. With this deal, MaxLink will speed up its deployment into Toronto and Vancouver. MaxLink also planned to connect with similar providers in the United States and other countries, providing Canadians with global access. MaxLink is owned by a group consisting of organization president Joel Bell, Stephen R. Bronfman through Claridge (SRB) Inc., Capital Communications CDPQ Inc., which is a unit of the Caisse de depot et placement du Quebec, Seymour Epstein, James Meekison, Robert Bradshaw, Societe Gasbeau and US Wavelink Telecommunications Inc.