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

To: pat mudge who wrote (12479)	7/31/1999 8:12:00 AM
From: Glenn McDougall	Read Replies (1) \| Respond to of 18016

Newbridge takeover rumours intensify Talk says Ericsson made $45 (U.S.) a share offer on July 22 but was rejected Simon Tuck Technology Reporter; Source: Datastream and Bloomberg Financial Services Saturday, July 31, 1999 Ottawa -- Talk of a possible takeover of Newbridge Networks Corp. has again intensified as several sources say the Canadian company has been discussing a deal with Swedish giant L.M. Ericsson Telephone Co. Inc. Takeover rumours have been swirling around Kanata, Ont.-based Newbridge for more than two years, but this latest round is different -- it comes attached with numbers. One well-placed source said yesterday that Ericsson had offered to buy Newbridge for $45 (U.S.) a share on July 22 but the bid was rejected by Newbridge founder Terence Matthews, who owns about 25 per cent of the company. "They've been dancing together for two years," the source said. "That's as good as it's going to get." The total price of more than $7.5-billion would have been a substantial premium over Newbridge's current market value. The stock fell 31 cents to $27.13 yesterday on the New York Stock Exchange. An on-line publication got the latest talk going Thursday when it reported that the two companies were holding takeover discussions in Washington this week and that a deal could be announced as soon as Monday. Both companies yesterday denied a deal was possible. "The whole thing is speculation," said Newbridge spokesman John Lawlor. "It's just another rumour du jour," said Ericsson Canada's Bill Gajda. "There's no announcement imminent." Both, however, also left a little wiggle room when asked if there had been any such talks in recent weeks. "I wouldn't be surprised if Ericsson has been talking to a number of companies over the last few weeks, including Newbridge," Mr. Gajda said. Mr. Lawlor said he was "almost certain" that no talks had occurred. This week's Ericsson rumours were just the latest takeover talk to link Newbridge, a leader in data networking technology, with a larger voice networking company. It's also been linked with Nortel Networks Corp. of Brampton, Ont., Lucent Technologies Inc. of Murray Hill, N.J., and Siemens AG of Germany. As with most of the previous rumours, yesterday's talk boosted Newbridge's share price -- at least in the short term. The stock had jumped over the $43 (Canadian) mark in morning trade as word of the takeover rumours spread. By the end of trading yesterday, however, both companies had denied a deal was imminent and Newbridge shares had fallen 2.4 per cent or $1 to $40 on the Toronto Stock Exchange in heavy trading of 1.6 million shares. The stock has a 52-week range of $23.85 and $60.50. COMPANY SNAPSHOTS L.M. Ericsson Chairman, CEO: Lars Ramqvist Sweden symbol: LMEA Head office: Stockholm, Sweden Employees: 101,485 1998 revenue: 184.4-billion SF 1998 profit: 13-million SF Operation: Develops and produces advanced systems and products for wired and mobile communications in public and private networks. The product line includes digital and analog systems for telephones and networks, microwave radio links, radar surveillance systems and business systems. -** Newbridge Networks Chairman, CEO: Terence Matthews TSE symbol: NNC Head office: Kanata, Ont. Employees: 6,336 1999 revenue: $1.8-billion 1999 profit: $179.2-million Operations: Designs, manufactures, markets and services networking products and systems. The company's products enable corporations and common carriers to build, expand and manage communications networks worldwide.

To: pat mudge who wrote (12479)	8/1/1999 1:19:00 AM
From: Tunica Albuginea	Respond to of 18016

Pat, Re:" you don't see a buyout or merger ". I wonder if Terrence doesn't think that it is time to partner up with a bigger player so as to provide the famous end to end solution that has eluded everybody so far. Certainly LU, CSCO ot Siemens might have been better candidates however I suspect they were not willing to let TM play a major role. They are all primadonnas in a way when you get to that position. By the same token though I suspect TM does not want to play 2nd fiddle either. And I suspect that the folks at ERICY are willing to let him deal first. And so this may represent a challenge to TM: a build a telco empire from .....almost scratch. He may believe that if he now has access to 100000 employees plus all that cash plus all the talent he's been incubating he may be able to take on Europe and the US. Better than playing 2nd fiddle. What do you think? TA Ericsson has a pile of cash but I still don't see a buyout or merger. Perhaps an OEM. Based on the agreement when ACC was bought, the two companies are already cooperating on development. Not sure if the SBC announcement that it was integrating an ERICY product into its network has any significance. Now, for all my friends who've followed my occasional week-ends in Baja, I just learned the enclave, La Mision, has been included in a book of Ten Best Spots to Hit the Beach. search2.usatoday.com. I actually can't believe it got mentioned as it's about the most low-key place you can imagine. A few weeks ago we all watched some sort of motorized hang-glider take off from the beach --- looked like something out of Jules Verne --- a tricycle with wings. Horseback riding is also a big attraction. Mostly locals who come out on week-ends and then disappear leaving behind completely deserted beaches. A bit off topic, I admit, and if I procrastinate the yard work any more, it'll be dark and I won't have to do it. :) Pat