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: fumble who wrote (13667)	10/15/1999 2:26:00 PM
From: gbh	Read Replies (1) \| Respond to of 18016

fumble, thanks for that explanation. Now the real question is will Newbridge even be at 22? With the market looking as if it will cave in, and Newbridge showing no signs of reaching a bottom, my guess is the stock is headed for the 18-20 range. Gary

To: fumble who wrote (13667)	10/15/1999 2:41:00 PM
From: Serge Collins	Read Replies (2) \| Respond to of 18016

All this talk about share exchange formulas begs the question -- why did Newbridge management decide to make a relatively small takeover using a share exchange instead of buying the company outright with cash? There are no regulatory hurdles preventing them from buying Stanford with a cash tender offer. I know some will say that this is the way it's done with most takeovers, but most takeovers in technology involve much bigger plays where the outlay of cash would make that prohibitive. In this case Newbridge had more than sufficient cash on hand to do it. It could have avoided much trouble, uncertainty and further dilution. What they chose instead was a somewhat complicated exchange formula, and a formula that lends itself well to manipulation. If they wanted to buy Stanford with a share exchange, they should have made it a clear and precise exchange with a clearly defined exchange price. Instead they have allowed their stock to fall prey to manipulators (arbitrageurs) and left their long-suffering shareholders to twist in the wind yet again. This is yet another example of poor management thinking. Nothing this management team does is well thought out. However, one thing they do extremely well is find ways to make money for Terry Matthews through his I'm-Rich-And-Getting-Richer-With-These-Affiliates Program. Please, I know everyone here loves Terry, but can we dispense with the apologies on this one. Just this one time. Thank you and have a good weekend.