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

To: zbyslaw owczarczyk who wrote (15393)	12/6/1999 5:03:00 PM
From: Captain Jack	Read Replies (1) \| Respond to of 18016

Z -- they no longer need to know about what they write. The media has slipped badly in the last three years. The point of the article is unless CSCO (and others) are able to keep growing as NN has been unable to do, they will meet the same fate. Using NN as an example ought to give strong indication to TM and the board the hay day has passed and shareholder value can only be enhanced by being added to a lager company that has not stopped growing and is pushing new markets and products--- a FULL RANGE of products. Just like buying a new Caddy, you do not buy the engine, body, interior, and transmission from different companies....

To: zbyslaw owczarczyk who wrote (15393)	12/7/1999 7:51:00 AM
From: Glenn McDougall	Read Replies (3) \| Respond to of 18016

Newbridge selloff gains momentum. Deal seen by year-end Financial Post OTTAWA - Newbridge Networks Corp.'s search for a buyer has proceeded beyond initial discussions with several prospective suitors, say investors who attended a meeting with Newbridge officials late last week. "Newbridge is in discussions with everyone. But it appears there are a couple [of potential buyers] that have taken it a step further. I think there will be a deal done by the end of the year," said one person who attended the conference hosted by CT Securities Inc., but did not want to be quoted. Ken Wigglesworth, Newbridge's chief financial officer, declined to comment when asked at the meeting if the firm had signed non-disclosure agreements with any company. Such an agreement would suggest talks have progressed to the point at which a buyer is examining Newbridge's technology and financial statements. Mr. Wigglesworth told clients of CT Securities that any sensitive questions would not be answered during the luncheon presentation but that he would try and respond to them during individual meetings afterwards. "The people who had one-on-one meetings were buying stock afterwards," said one attendee. Newbridge has set up an internal management committee, headed by Mr. Wigglesworth, to act as liaison between the board of directors and Morgan Stanley Dean Witter, the brokerage hired to evaluate any takeover offers. The board also has a subcommittee struck to consider any bids that are received. Mr. Wigglesworth met with several members of the board after his Friday meeting. He also left the meeting several times to talk on the phone to Pearse Flynn, Newbridge's president, who was in Europe on Friday to talk to customers and employees. Mr. Wigglesworth was asked what kind of company could buy Newbridge. He said North American telecommunications equipment companies would benefit more from buying his company, but European firms need the technology more. There are six likely Newbridge suitors, said James Kedersha, a technology analyst at SG Cowen Securities Corp.: Cisco Systems Inc., Nortel Networks Corp. and Tellabs Inc. of North America, and Alcatel SA, LM Ericsson AB and Siemens AG of Europe. "Nobody has backed away yet," said an analyst who attended Friday's meeting. Mr. Kedersha and other analysts say it's likely a deal could be announced before Newbridge's third quarter ends on Jan. 31. But potential buyers may wait to see how the company's products sold during the quarter before making a bid. Duncan Stewart, an analyst who runs several technology mutual funds at Tera Capital Corp. and who attended the meeting, said Newbridge has three core assets that would be attractive: a large and valuable staff, good products and a large base of established customers. Mr. Stewart said Terry Matthews, Newbridge's founder and chief executive, appears to be spending his time convincing worried customers the firm's internal turmoil isn't interfering with its ability to meet its customer obligations. "Terry is the best telecommunications salesman in human history ... his job now is to retain customers and make sure Newbridge remains as attractive as possible [to buyers]," he said. Mr. Matthews, who is also Newbridge's chairman and biggest shareholder, has been considered reluctant to sell the company in the past, was quoted on Nov. 18 as saying he was now open to all possible options. Rob MacLellan, CT Securities' analyst, told investors at the meeting he has a target price of $33 (US) a share, but a serious takeover bid could push the stock to $40 (US). Mr. MacLellan would not answer media questions about the meeting yesterday. Newbridge stock closed yesterday at $33.25, up 5½ in Toronto.