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

To: Frodo who wrote (17034)	2/15/2000 11:24:00 AM
From: Tunica Albuginea	Respond to of 18016

Frodo, exactly how does the NT/TLAB alliance put pressure on NN ? From Financial Post: " Analysts say the deal will have little impact on Newbridge, which competes with both Nortel and Tellabs, but not in the optical networking side of the telecommunications business. TA ---------------------------- Jill Vardy Financial Post OTTAWA - As market rumours continued yesterday that Newbridge Networks Corp. is pushing to sign a takeover deal by next week the company stayed silent. Newbridge will announce its third-quarter results on Feb. 22 and analysts believe it wants a deal in place by then. News yesterday that Nortel Networks Corp. and Tellabs Inc. have signed a cross-licensing agreement initially sent Newbridge stock down -- it was off 8% at one point -- but it rebounded later in the day to close up 10½ at $48.75. Analysts say investors are growing fearful Newbridge may be having difficulty concluding a deal that would see French telecom company Alcatel SA, or some other big networking company, buy it. Rumours flew last week that a purchase agreement with Alcatel would be announced by last Friday. "According to some people, it was supposed to happen Friday, and it didn't. And it doesn't seem imminent today. So people are saying, Let's take a bit of money off the table," said Duncan Stewart, technology analyst and partner at Tera Capital Corp. "Every day that goes by, people become more worried that it's not going to happen." The licensing agreement between Nortel and Tellabs allows each company to access the other's optical networking patent portfolios. Nortel will get royalty payments as a result of the deal, but no other details were provided. Analysts say the deal will have little impact on Newbridge, which competes with both Nortel and Tellabs, but not in the optical networking side of the telecommunications business. Some investors appeared to conclude the alliance may reduce the number of companies interested in buying Newbridge, which announced on Nov. 18 that it is entertaining takeover offers. "Every time a potential bidder joins or leaves the party, the stock moves up or down like a yo-yo," said one analyst, who asked not to be named. Nortel said it will spend $260-million (US) and hire 3,400 people to boost its production of fibre-optic equipment. Nortel predicts its fibre-optic business will jump by 30% in 2001. To help meet the demand, the company will spend about $64-million (US) on two facilities in England, $102-million (US) in Ottawa (creating 1,000 jobs in that city alone) and another $84-million (US) in Montreal (with another 1,000 jobs created). Meanwhile, the agreement between Nortel and Tellabs will strengthen the long-term competitive position of both companies, the firms said yesterday. Typically, these agreements generate some cash for the patent holders -- Nortel in this case -- and prevent legal battles from arising as firms bring out similar technologies. ------------------------------------------- Message #17034 from Frodo at Feb 15 2000 9:47AM Z, That's a nice positive spin, but NNs getting spanked! The alliance announcement between Nortel and TelLabs must have put a little pressure on NN. DF

To: Frodo who wrote (17034)	2/15/2000 12:03:00 PM
From: Tunica Albuginea	Read Replies (1) \| Respond to of 18016

Frodo, I just don't see " NN getting spanked here ". NN had a nice ride on the coattails of CSCO's earnings last Wed and jumped to 35 15/16. Nice move. 36 was also an old resistance level. So it is backing off. Normal. It went down to breakout level of 32 and is now coming back. And all this is happening on low volume. Technically this is all good. The reasons NN is down now have to do more with perception and very little reality. Perception: -As Feb 22 approaches, and " no deal is announced ", some took their profits.Fine, no big deal. -Perhaps with the " improved outlook for NN, NN may not want to be sold ". Pure speculation. We don't know what NN will do. All of last 2 1/2 month activity still points to fair weather ahead. Reality: a)NN is down because the Naz is tanking. ` -Naz is tanking because oil has reached 10 year high and there is no relief in sight. -Naz is tanking because of higher interest rates and abstruse PEs of stocks like CSCO and the inets. -Naz is tanking because people are afraid of PPI and core PPI coming up. b)Above has no effect on NN in a fundamentsl way. -NN has already corrected. -It's PE is modest comparing other stocks. -If the FFC's pronnunciation is interpreted correctly, allowing RBOC s to get thigh deep into big time ATMs, the sky is the limit for NN, because there is NO competition in sight, and not for at least 2 years. -NN is not going to make previous mistakes again IMHO: It will outsource and build these ATM cupcakse as fast as you can say " give me a dozen " ,I bet you, TA

To: Frodo who wrote (17034)	2/15/2000 1:55:00 PM
From: larry pollock	Read Replies (2) \| Respond to of 18016

From today's Financial Post: For Tuesday, February 15, 2000 Newbridge squeezed by Nortel-Tellabs deal Investors grow nervous By JILL VARDY The Financial Post OTTAWA - As market rumours continued yesterday that Newbridge Networks Corp. is pushing to sign a takeover deal by next week the company stayed silent. Newbridge will announce its third-quarter results on Feb. 22 and analysts believe it wants a deal in place by then. News yesterday that Nortel Networks Corp. and Tellabs Inc. have signed a cross-licensing agreement initially sent Newbridge stock down -- it was off 8% at one point -- but it rebounded later in the day to close up 10c at $48.75. Analysts say investors are growing fearful Newbridge may be having difficulty concluding a deal that would see French telecom company Alcatel SA, or some other big networking company, buy it. Rumours flew last week that a purchase agreement with Alcatel would be announced by last Friday. "According to some people, it was supposed to happen Friday, and it didn't. And it doesn't seem imminent today. So people are saying, Let's take a bit of money off the table," said Duncan Stewart, technology analyst and partner at Tera Capital Corp. "Every day that goes by, people become more worried that it's not going to happen." The licensing agreement between Nortel and Tellabs allows each company to access the other's optical networking patent portfolios. Nortel will get royalty payments as a result of the deal, but no other details were provided. Analysts say the deal will have little impact on Newbridge, which competes with both Nortel and Tellabs, but not in the optical networking side of the telecommunications business. Some investors appeared to conclude the alliance may reduce the number of companies interested in buying Newbridge, which announced on Nov. 18 that it is entertaining takeover offers. "Every time a potential bidder joins or leaves the party, the stock moves up or down like a yo-yo," said one analyst, who asked not to be named. Nortel said it will spend $260-million (US) and hire 3,400 people to boost its production of fibre-optic equipment. Nortel predicts its fibre-optic business will jump by 30% in 2001. To help meet the demand, the company will spend about $64-million (US) on two facilities in England, $102-million (US) in Ottawa (creating 1,000 jobs in that city alone) and another $84-million (US) in Montreal (with another 1,000 jobs created). Meanwhile, the agreement between Nortel and Tellabs will strengthen the long-term competitive position of both companies, the firms said yesterday. Typically, these agreements generate some cash for the patent holders -- Nortel in this case -- and prevent legal battles from arising as firms bring out similar technologies.