Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: pat mudge who wrote (13508)	10/1/1999 6:41:00 AM
From: Glenn McDougall	Read Replies (1) \| Respond to of 18016

Investment pays off Newbridge expected to make $275M profit By KEVIN BELL, Ottawa Sun NEWBRIDGE Networks Corp. may earn mixed reviews for the firm's performance, but as an investor it's a sure winner. The Kanata company learned yesterday it will be able to pump at least $275 million US into its war chest from a sale of shares that it holds in Juniper Networks Inc. of Mountain View, Calif. Juniper received approval yesterday from the U.S. Securities and Exchange Commission for the sale of five million shares in a secondary public offering, including at least 1.5 million shares held by Newbridge. According to documents filed with U.S. regulators, the shares will be priced at $190, giving Newbridge net proceeds of $183.35 per share after commissions and fees are deducted. That gives Newbridge a tidy profit of close to $300 million on a relatively tiny investment in Juniper. "It was such a small amount and they're getting out in the mid-hundreds of millions of dollars," said analyst Patrick Houghton of Sutro & Co. "It was such a good investment. I wish I had been in on that deal." Newbridge officials did not return phone calls yesterday. Analysts estimated its Juniper investment at $20 million. During fiscal 1999, Newbridge generated $456 million Cdn from stock sales, including $258 million from Advanced Computer Communications. Juniper, a provider of cutting-edge Internet systems, has been hot since it went public in June, with its share price rallying more than 500% from $34 US to peak at $234 in August. Yesterday, its share price closed at $182 on the Nasdaq. Newbridge will be able to add the proceeds from the stock sale to more than $1 billion in its coffers. The company has said it will make at least two more acquisitions to advance its strategy to provide Internet Protocol (IP) equipment and services. Since the cash will show up on its books as a onetime gain, analysts said it wasn't very important to the company's overall performance. "It's irrelevant to me," said Andrew Shopick of Nutmeg Securities. "The only thing that matters to me is what they do with the proceeds." Newbridge announced yesterday it has completed a $350-million acquisition of TimeStep Corp. of Kanata and Northchurch Communications Inc. of Andover, Mass., as a part of its attempt to compete in the IP market.