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

To: Doug who wrote (14567)	11/15/1999 12:56:00 PM
From: Tunica Albuginea	Respond to of 18016

Doug, Tim and Chilbert,I find the idea of ERICY buying NN in the open market very interesting. Unfortunately you can't buy more than 9% before announcing it to the whole world though SEC filing. I' ve read in several ( 2-3 ) reports that NN has rebuffed ERICY's offers a couple of times this year. If true, then ERICY seems to be very interested in NN. So the question is why? ERICY with it's big market cap, 80 bill and diversified telco structure ericsson.com may easily be able to afford NN. It is possible that ERICY may be eyeing NN to more aggressively expand itself in Europe against NOKA as well as move Eastwards to Russia, China and Asia Pacific rim? Otherwise, how would you explain their alleged repeated offers to buy NN? What do they want NN for? I also find comparisons between ERICY and NOKA interesting NOKA market cap 140 bill = ~ 2X ERICY but they have half the employees ( 40000 v. 100000 ) and sport higher PE ( 71 ) v. NOKA ( 60 ) . ERICY 1.7 bill shares, NOKA 1.1 bill. There is no question that CONSOLIDATION is the key word in telecoms. EVERYBODY except NN has done it. Now I think that from a global business viewpoint, a business plan ultimately supersedes technology. (Dell=online, msft=predation!,CSCCO=buy everybody out; these are all successful business plans!! ). So if EVERYBODY ( by now, including NN Board, I think ), EXCEPT TM, thinks that consolidation is the best plan, TM must be up against a whole army of people. I do believe what Jim Marshall said on Bloomberg this AM that TM must be tiring out. The last 5 years must have been frustrating for him to fight a bigger CSCO in a bigger market ( USA ) from a smaller market ( Canada ), in spite of his superior ATM technology. It is clear now however that consolidation in Telcos is proceeding at lightning speed. Chambers described the future architecture of Networks: IP+ATM. He tried to implement that though STRATACOM ATMs + CERENT purchases. I think that ERICY is trying the same thing on the other side of the ocean with NN's ATM + ERICY/Juniper +/- ALA , as elmatador pointed out. I think there is a a new spirit of cooperation in the European Economic Union in the last 5 years. These countries understand that in order to improve the tenor of living of their subjects they need to sell outside Europe. To do that they need to compete with US products. This why they will get into this fighting pit with both feet and rolled up sleeves. I think NN will go. It is just a question of the details and the price, TA