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

To: zbyslaw owczarczyk who wrote (14861)	11/20/1999 8:06:00 PM
From: Doug	Respond to of 18016

Z.O: My bias towards cash is for the following reasons. a: T/M and Insiders want cash on demand . A share swap will result in a drop in ERICY's stock which will upset their shareholders. The selling can result in a price drop possibly 30%. b: Sweden, like most European countries, do not encourage The Pooling of Assets method of mergers. If this is not possible, the Goodwill has to be amortized and this will affect ERICY's profits for quite some time. c:Revenue growth of NN is lower than that of ERICY. A growth Company with cash is therefore biased towards a cash offer in order to improve its Revenue and Income growth. Unfortunately as small Investors, we take what we can get.!