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

To: Michael M who wrote (14425)	11/10/1999 7:05:00 AM
From: Glenn McDougall	Respond to of 18016

jmo....these thoughts are based on nothing more than my opinion... -It does make sense that companies are looking at taking out Newbridge. -$24 to 25 dollars U.S. is a joke, Terry won't sell. -Cisco, ya sure Terry wants to sell to the company he has targeted as enemy #1, I think not unless they pile lots of green on the table...Cisco may want NN but if not successful what message would it send to its clients. If Cisco enters they must win. -Siemens, Alcatel, Ericsson, Nokia would all want to take-out NN... the issue with all is what role would TM have and would he accept it... now price... high technology deals are usually friendly...being the last large ATM vendor available to buy should lead to having a open bidding process. This could bring a more reasonable offer for NN. -Marconi PLC... I don't know enough about the company -Tellabs... a smaller company than the rest not sure how a deal would be structured... -Others...who may want to enter into the business??? Regards Glenn Rumours spur rally Newbridge stock gains on talk of takeover By KEVIN BELL, Money Editor THE latest takeover chatter about Newbridge Networks Corp. didn't get beyond the rumour stage yesterday before analysts declared it a non-starter. Unconfirmed reports that France's Alcatel SA is considering offering $24 US to $25 a share kicked the rumour-mill into overdrive and sparked a rally in Newbridge shares. But Newbridge watchers say the latest rumour has virtually no chance of going anywhere since chairman Terry Matthews is unlikely to accept a low-ball offer. "I don't think $24 is enough," said George Hunt, an analyst at Wachovia Securities Inc. "Most of the time I hear rumours I don't believe. I suspect this one actually is happening, but I don't think Terry will accept it." The rumours sparked a surge in Newbridge stock, closing up by $1.50 at $25.90 in Toronto yesterday. In New York, Newbridge closed at 17 1/16. The stock recently plunged after Newbridge reported last week it will report profits Aug. 18 that are roughly half of what analysts were expecting But while many analysts were scoffing at the rumoured takevover price, Brendan Caldwell, vice-president of Caldwell Securities, said the reports could bring other prospective buyers out of the woodwork. It's possible that Cisco Systems would become interested in making an offer if it saw that Newbridge's valuable technology could go cheaply to a competitor. "If Alcatel is making overtures for $25, that would be an absolute steal," Caldwell said. "Somebody is then going to make a bid for $30. If I was Cisco, I would stake my own claim". If nothing else, the rumour mill has likely put Newbridge into play -- despite the fact that the Kanata firm is commonly talked about as a takeover target. "The stock market is saying Newbridge is in play." Caldwell said. "The stock is up 25% from its lows." Paul Sagawa, an analyst with Sanford C. Bernstein & Co., said Newbridge should consider an Alcatel offer if it ever materializes. The price would be a decent premium over yesterday's stock price and Newbridge, which has a strong European presence, would be a good fit for the French telecom, analysts said. "I think they owe it to their shareholders to consider any takeover offer," Sagawa said. "Shareholders should be hopeful that such a thing should happen