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

To: Ian@SI who wrote (14734)	11/18/1999 11:11:00 PM
From: Tim Luke	Read Replies (1) \| Respond to of 18016

you can bet he has offers on the table as we speak

To: Ian@SI who wrote (14734)	11/19/1999 1:46:00 AM
From: Tunica Albuginea	Respond to of 18016

Pat and Ian: my impression of the cc: I did not keep notes so this is 5 hours later and off the top of my head. I was impressed by Flynn. This guy is hot.He is on a roll. They may not have wanted to go into certain specifics to avoid tipping off the competition CSCO/ LU/NT? However I am certain NN will go, sooner than later. They did buy themselves sometime though by announcing the possibility of sale.Even though TM may have danced away from the altar before, I think this is for real. First and foremost because he made it public. I believe he is a man of his word. Also because the board and shareholders all feel that consolidation is the name of the game these days. So TM is cleaning the co up for sale. -laying off 700+ employees. -eliminating marginal products ( Flynn: " we are no longer going to try and do everything ). -beefing manufacturing where they've been weak. I am sure a buyer would like to see that corrected first. -concentrating on their forte: ATMs -they are ready to test the 50 GB switch. So now we are back on E-Bay: the bidding will begin: I believe TM will be fair. He will ultimately do what is best for shareholders and him.( This is the first time time I hear NN say " we are going to increase shareholder value "). From a financial viewpoint first and foremost. I believe TM has enough self confidence that he would be willing to talk even to old competitors CSCO/LU. Because I think that CSCO/LU realize that if TM joins a big competitor, they will have another headache to worry about. So it behooves them to be nice to TM. Everybody else also realizes, IMHO, another important point: TM is more valuable alive than dead!!!!! What I mean is that TM, under a bigger financial umbrella, would be able to further unleash his energies and develop new and exciting products, especially if he is liberated from marketing worries. So any buyer I think would want TM in on the team. They need to make him a good offer. Again, one needs to be very careful I think now, about how you trade in and out of NN. At this point I think that a buy out could occur anytime. The competition knows already what products NN has and the plan. Everything is in place already. So it is a matter of execution. Execution I think will be easier now because of slimming down. I think any buyer would be keenly aware that the most important point right now is to get the 50/450 switch out ASAP ,and with No glitch, to stick it to the competition and gain customers first. Being first is always of critical importance. So they would want to get started with acquisition ASAP. All very exciting. A reshaping of the Telco world as we know it, TA ---------------------- you can bet he has offers on the table as we speak Relax, he's not even in the country but gone to meet with his European sales leaders. The plan is to spiff up the company not abandon it to the first taker. I suspect you'll be able to ride this up and down several times before anything substantial materializes. You have to realize TM's taken several suitors down the garden path only to say no at the altar. I believe Alan did the same only to have TM raise his hand at the critical, "If anyone has reason these two should not be wed. . ." I suspect there are more than a few skittish brides out there. If you were one, what would you do to get the upper hand? Thoughts from the side. . . Pat ------------ Message #14734 from Ian Stromberg at Nov 18 1999 11:09PM TA, After listening to the conference call, I hold out no hope whatsoever that NN will survive as a separate entity for another 3 quarters. I now expect them to be sold within 1 to 2 quarters. And I doubt that it's potential value will be realized, though it will get taken out at a much higher price than today's close. Not only would Terry be reluctant to give it away, current shareholders won't be anxious to get out at any price. The weak hands exited prior to and subsequent to the last warning. Sad, but it now appears inevitable. FWIW, Ian.