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

To: zbyslaw owczarczyk who wrote (15875)	12/16/1999 7:31:00 AM
From: Glenn McDougall	Read Replies (1) \| Respond to of 18016

hursday, December 16, 1999 Newbridge keeps up search for new buyer By Kevin Bell, Ottawa Sun Newbridge Networks' shares edged downward yesterday after its new president surprised investors by saying the company has a go-it-alone strategy. But analysts said Pearse Flynn's comments do not mean Newbridge has abandoned its search for a buyer. Even though Newbridge announced last month it has hired an investment banker to shop it around, it still has to continue as though it can tough it out in a highly competitive market, said Rob MacLellan of CT Securities. "My opinion is that nothing has changed," he said. "That doesn't mean an offer is going to come tomorrow morning. But Newbridge has to protect its negotiating position." Newbridge shares fell by $1.35, or 4%, on the Toronto Stock Exchange yesterday to close at $33.95. MacLellan said he was surprised that the stock did not plummet further, considering that one "overdramatized" published report strongly suggested that Newbridge might be willing to risk flying solo over finding a buyer. A Newbridge spokesperson said the report contained errors and Flynn's comments were taken out of context. "We're still pursuing all strategic options," including a sale, the spokesperson said. Analysts say the only thing that is buoying the stock is investors' expectations that the company will find a buyer. But Flynn's comments put that notion in doubt. "I don't think the company needs to be sold," he said, adding that Newbridge is not talking to any potential suitors. Some analysts say at least six companies have expressed interest in Newbridge, including some that have publicly said they are not interested in acquiring Newbridge.