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

To: pat mudge who wrote (11910)	6/17/1999 4:42:00 PM
From: zbyslaw owczarczyk	Respond to of 18016

Newbridge comments:Ottawa, June 17 (Bloomberg) -- Newbridge Networks Corp. dropped a legal fight against WIC Western International Communications Ltd., which agreed to sell a unit Newbridge claimed had failed to honor an order for telephone equipment. Newbridge, the No. 5 networking company, sued WIC Western in February, alleging that its WIC Connexus Inc. unit breached a contract to purchase C$400 million (US$274 million) of equipment. It sought to force WIC Western and Connexus to honor the contract or pay damages of as much as C$1.25 billion. Connexus, which is building a wireless data network, will be sold to rival MaxLink Communications Group. The sale prompted Newbridge to drop the case because it expects to win back most of the lost order when Connexus becomes part of MaxLink, said Newbridge spokesman Paul Goyette. MaxLink is building its wireless network with Newbridge gear. ''We're very well positioned to grab the additional business,'' Goyette said. Newbridge won the Connexus order with Alcatel SA of France. It eventually lost that business to Cisco Systems Inc. of the U.S. and Bosch Telecom Inc., a unit of Germany's closely held Robert Bosch GmbH. Shares of Ottawa-based Newbridge were unchanged at C$41. Vancouver-based WIC Western fell C$0.05 to C$37.45. Closely held MaxLink will pay C$50 million to buy Connexus and Regional Vision Inc., another company that's building a wireless data network. The acquisitions will give MaxLink a Canada-wide network serving 207 cities, including all major centers such as Toronto and Montreal. Toronto-based MaxLink had expected to spend C$400 million to build its own network over three or four years starting in April 1998. It now plans on spending C$1 billion over the same period to complete all three networks. NYSE/AMEX delayed 20 min. NASDAQ delayed 15 min.