Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: tambry who wrote (14953)	11/22/1999 6:24:00 PM
From: pat mudge	Read Replies (1) \| Respond to of 18016

Tambry -- Glad you joined! Your comments are valuable. I like the idea of Nortel being the acquirer and don't see any reason why it couldn't happen. They already have Cambrian and BNI (wireless), and their headquarters are so close, within a couple months no one would ever know NN hadn't always been NT. Well, at least from the outside. Besides, if the only alternative were Cisco, I believe NT would bend over backwards to be the winner. For the record, I've never heard NT mentioned by anyone close to the company so this is definitely idle chatter. Pat

To: tambry who wrote (14953)	11/22/1999 9:04:00 PM
From: Doug	Read Replies (1) \| Respond to of 18016

tambry: Currently NT's P/S is 4.6; NN is 2.4. On a P/E basis NT is 37 and NN is 44. If NN had a 50% premuim, its P/S would then be 3.6 and P/E around 66. This will result in NT showing greater revenue/share but lower earnings. However if there are synergy savings, the difference in earnings could be made up. On the other hand,NT can ask for a closing in May so that NN;s earnings can benefit from the 50g switch. I do not think NT can presently consider buying NN at more than a 50% premium w/o affecting its earnings in the short term.