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Technology Stocks : Ericsson overlook? -- Ignore unavailable to you. Want to Upgrade?

To: Mika Kukkanen who wrote (3800)	11/18/1999 11:29:00 AM
From: elmatador	Read Replies (2) \| Respond to of 5390

Ericsson confirms interest in Newbridge Says struggling firm fits its acquisition strategy SIMON TUCK Technology Reporter Thursday, November 18, 1999 Ottawa -- L. M. Ericsson Telephone Co. Inc. has left the door open for a takeover bid of Newbridge Networks Corp., saying yesterday that the struggling firm fits its acquisition strategy. "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 News yesterday after an analysts' meeting in London. "If you're talking about Newbridge, then that would be a large acquisition, while ACC is a smaller acquisition." (Ericsson bought Newbridge's 60-per-cent stake in Advanced Computers Communications Corp. for $171-million [U.S.] in September, 1998.) Mr. Hellstrom's statement is the first comment that Ericsson has made on the takeover speculation that has engulfed Newbridge since it issued an earnings warning earlier this month. Sources close to Ericsson say it has been considering making an offer for all or part of Newbridge, but the company had declined to make any specific comment until yesterday. Ericsson, the world's third-largest maker of mobile phones, bought California-based Advanced Computer Communications (ACC) -- owned 60 per cent by Newbridge -- in 1998 for $285-million (U.S.). The Swedish company has always maintained that it prefers "a string-of-pearls" approach to acquisitions, preferring a series of small pickups. Newbridge spokesman John Lawlor said his company won't comment on things said by officials at other firms. Jim Kedersha, an analyst at SG Cowen Securities Corp. in Boston, said the Ericsson's string-of-pearls strategy may be a thing of the past. "They need something bigger," he said. "There may be some logic [to buying Newbridge]." Pia Gideon, an Ericsson official in Stockholm, said the company won't comment on its acquisition plans but is always open to new opportunities. "We are looking at companies all the time." Ericsson is one of at least two telecommunications giants that has in recent weeks been considering making a bid for Kanata, Ont.-based Newbridge. The company has seen its share price fall in recent months following disappointing quarterly results, but rise sharply in the past week on takeover talk. An executive with Alcatel SA of France, the other potential suitor, said earlier this week that Newbridge will be bought -- but not by his company. Newbridge shares edged up 60 cents (Canadian) to $27.85 on the Toronto Stock Exchange yesterday. Meanwhile, Tellabs Inc. of Lisle, Ill., said yesterday that it held unsuccessful takeover talks with Newbridge in March. Officials refused to reveal the identity of a current target, which may be bought by year-end for under $1-billion (U.S.). That company has no revenue yet -- a description that does not fit Newbridge. A spokeswoman declined to say whether Tellabs is still in talks with Newbridge. Analysts are of an almost unanimous view that Newbridge should be sold and are starting to believe that Terence Matthews, the company's founder and chief executive officer, may be interested. "I think those chances may be improving," Mr. Kedersha said. Newbridge's board of directors, meanwhile, met yesterday to review final second-quarter numbers and the company's so-called action plan, a new strategy designed to cure the ailing communications equipment maker's woes. The quarterly results and the new strategy are to be released today after the company's top executives hold an all-staff meeting at the Corel Centre, a local hockey arena, earlier in the day. Company officials were tight-lipped about the plan yesterday. "It's a fine piece of analysis," said company spokesman John Lawlor. Despite growing revenue, the company has warned of disappointing earnings and revenue figures in seven of the past 10 quarters. The pressure to sell Newbridge, which has been the subject of continuing speculation for more than two years, received a fresh boost earlier this month when the company issued its latest warning.

To: Mika Kukkanen who wrote (3800)	11/24/1999 10:00:00 PM
From: Eric L	Respond to of 5390

TIM Says Europe's First UMTS Call Made: totaltele.com Excerpt: "For the first time in Italy and in Europe, a phone call has been made in an urban environment with UMTS (Universal Mobile Telecommunications System) thanks to cooperation between TIM and the Ericsson group," - Eric -