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

To: Tunica Albuginea who wrote (14632)	11/16/1999 9:35:00 PM
From: Tunica Albuginea	Respond to of 18016

Newbridge Board to Decide on Strategic Plan at Meeting Tomorrow quote.bloomberg.com Newbridge Board to Decide on Strategic Plan at Meeting Tomorrow Ottawa, Nov. 16, 1809Hrs, (Bloomberg) -- Newbridge Networks Corp. said its board members will meet tomorrow and Thursday to discuss a strategic plan that could change how the phone-equipment maker does business. Newbridge has been the subject of takeover speculation since it said two weeks ago that profit in the fiscal second quarter ended Oct. 31 would lag forecasts and its president quit. Among companies mentioned as possible suitors are Ericsson AB, Tellabs Inc., Cisco Systems Inc. and Nokia Oyj. Alcatel SA yesterday said it has no plans to acquire, take a stake in or resell equipment for Newbridge. Spokesman John Lawlor said the two main items on the board's agenda are ``the strategic action plan' and approval of the earnings, which will be released Thursday. Lawlor said the plan has been under development for the past few months. He declined to provide further details. Ottawa-based Newbridge has said it will unveil parts of its strategy on a conference call following its earnings report. ``They should hire an investment banker to pursue strategic options for the company,' said Michael Cristinziano, an analyst at Gerard Klauer Mattison & Co. ``Inevitably, the company will get sold.' Newbridge is trying to determine how to recapture market share lost to Lucent Technologies Inc. in the recent quarter. It said Nov. 2 that profit will be half of what it led analysts to expect, blaming competition from the world's biggest phone- equipment maker. Earnings before acquisition costs will be 8 U.S. cents to 10 U.S. cents a share, compared with previous analyst forecasts of 20 U.S. cents. In the year-earlier period, profit was 18 U.S. cents. Chairman and Chief Executive Terry Matthews has been resistant to selling the company that he founded in 1986 and holds a 21 percent stake in. Analysts say that the board will listen to his reasoning on whether a sale is the best option. ``It's a board that is close to Terry and probably listens a lot to what he has to say,' said Patrick Houghton, an analyst at Sutro & Co. Newbridge shares fell C$2.25 (US$1.54) to C$27.25 on the Toronto Stock Exchange. The stock has tumbled 42 percent this year.