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

To: Doug who wrote (14643)	11/17/1999 2:17:00 PM
From: Hawkeye	Read Replies (1) \| Respond to of 18016

Wednesday November 17, 2:06 pm Eastern Time Newbridge quiet on Ericsson's takeover comments By Susan Taylor OTTAWA, Nov 17 (Reuters) - Canada's Newbridge Networks Corp. (Toronto:NNC.TO - news) (NYSE:NN - news) refused comment on Wednesday after Swedish telecoms equipment maker Ericsson said it is not opposed to making large acquisitions such as a takeover of Newbridge. Ottawa-area telecoms equipment maker Newbridge has been seen as a takeover target since issuing its sixth earnings warning in 10 quarters on November 2 and announcing the resignation of President Alan Lutz. The company's stock was subsequently battered by investors, but takeover rumors have helped it regain some ground. Shares in Newbridge added C$1.45 to C$28.70 on the Toronto Stock Exchange in early trade on Wednesday and 3/4 to $19-5/8 on the New York Stock Exchange. Newbridge has played down media speculation that points to Ericsson and France-based telecoms group Alcatel Alsthom as interested in buying the company. Newbridge spokesman John Lawlor said on Wednesday he could not comment on remarks from Ericsson that it would consider large acquisitions of firms the size of Newbridge. ''If we find an acquisition target which is big, then we will of course present it to Ericsson's board,'' President Kurt Hellstrom told Reuters after an analysts' meeting in London earlier on Wednesday. Responding to a question on what would constitute a large acquisition, Hellstrom said: ''If you're talking about Newbridge, then that would be a large acquisition, while ACC was a smaller acquisition.'' Ericsson bought California-based Advanced Computer Communications (ACC) from Newbridge in 1998 for $285 million. The world's third-largest maker of mobile phones and the biggest producer of mobile systems, Ericsson has a strategy of buying small- and medium-sized companies but said it would consider a large firm that was an interesting opportunity. ''Ericsson may simply be leaving the door open and may have somebody else in mind, they may have nobody in mind,'' said Rob MacLellan, an analyst at CT Securities in Toronto. ''I wouldn't read too much into it.'' Newbridge denied in an interview with Reuters on Tuesday recent media reports that its board was told it would review takeover offers when it meets later on Wednesday and Thursday. The company will consider an action plan to address sales problems.