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

To: Tom Drolet who wrote (17115)	2/17/2000 7:20:00 AM
From: Tunica Albuginea	Read Replies (1) \| Respond to of 18016

Nice post Tom. I would like to undeline the " good parts " : globeandmail.com Alcatel SA is in "serious discussions" to buy Newbridge Networks . "It's down to the nitty gritty," A Newbridge spokesmanÿ said that the process of trying to find a buyer is going well. " the French company provides a better fit than any of the other five " "There's enough smoke that a deal is likely to happen," Newbridge is expected to release much-improved numbers . ( which ) would make the deal an easier sell to the buyer's board of directors and shareholders. Newbridge would also prefer to wait until its quarterly results have been tallied,ÿ analysts say, so that the company can demand a higher selling price. :-) TA Message #17115 from Tom Drolet at Feb 17 2000 6:38AM zbyslaw et al: FYI--Globe and Mail front headline ROB today-Thursday. Tom D. Newbridge sale said imminent. Telecommunications giant Alcatel in 'serious discussions' after two other suitors walked away last week. SIMON TUCK Technology Reporter Thursday, February 17, 2000 Ottawa -- Alcatel SA is in "serious discussions" to buy Newbridge Networks Corp. and a deal could be announced as soon as Tuesday, industry sources say. The Paris-based telecommunications giant was left as the only serious bidder for Newbridge of Kanata, Ont., when two other prospective buyers -- L.M. Ericsson Telephone Co. Inc. of Sweden and Siemens AG of Germany, Newbridge's most important partner -- walked away from the takeover talks more than a week ago, a source familiar with the negotiations said yesterday. "It's down to the nitty gritty," said the source, a well-connected industry executive. "They're in serious discussions." The departure from the scene of Ericsson and Siemens has left Newbridge with less room to leverage a higher price from Alcatel, which is believed to crave Newbridge's telecommunications switching portfolio. A Newbridge spokesman would not comment, except to say that the process of trying to find a buyer is going well. An Alcatel spokesman in Paris also refused comment. One analyst said a deal between Alcatel and Newbridge makes sense because the French company provides a better fit than any of the other five or six prospective buyers that have kicked Newbridge's tires in recent months. "There's enough smoke that a deal is likely to happen," said the analyst, who asked not to be named. It's unlikely an announcement will be made before Tuesday, when Newbridge is scheduled to release its third-quarter results. That's because Newbridge is expected to release much-improved numbers over its disappointing results from the previous quarter, which would make the deal an easier sell to the buyer's board of directors and shareholders. Newbridge would also prefer to wait until its quarterly results have been tallied, analysts say, so that the company can demand a higher selling price. The company's sales team, particularly in the lucrative U.S. market where Newbridge has been struggling, is under intense pressure to put together a strong quarter to help out the company's negotiators. Newbridge has been rumoured to be a takeover target for more than a year as the data and voice telecommunications equipment makers have converged. The company routinely denied it was on the block until November, after releasing its latest batch of disappointing results. "I think Terry's got to sell and the whole world knows it," an analyst said. If Newbridge doesn't announce a deal by Tuesday, analysts said, investors might become concerned that negotiations have fallen apart and begin a selloff. Analysts said they expect the selling price for Newbridge to be between $40 (U.S.) and $45 a share. END

To: Tom Drolet who wrote (17115)	2/17/2000 8:46:00 AM
From: zbyslaw owczarczyk	Read Replies (1) \| Respond to of 18016

This two statements contradict each other: It's unlikely an announcement will be made before Tuesday, when Newbridge is scheduled to release its third-quarter results. That's because Newbridge is expected to release much-improved numbers over its disappointing results from the previous quarter, which would make the deal an easier sell to the buyer's board of directors and shareholders. - most likely in my opinion If Newbridge doesn't announce a deal by Tuesday, analysts said, investors might become concerned that negotiations have fallen apart and begin a selloff.-- less likely Departure of Siemens and ERICY is most likely that they wanted to pay well only for part of the business or they were offering lower price. We all realize that unofficially biting war, if any, has occurred before final candidate has been chosen. Now most likely, they are talking details. I expect Terry, which will end up with 4% of ALA to be on ALA board and may still be CEO of Newbridge, subsidiary of Alcatel(some companies bought by ALA did not changed the name). Some of you may say why TM would stay. Well, he may not be good manager to run company(he has not been doing this for 1 1/2 year), but he for sure knows were industry is going and what technology yo look at. ATM,LMDS,3DSL ect. It was NN who sold Optera(DWDM) and with Cambrian to Nortel!!!!!!!!!. Optera was not invented by Nortel. BTW,big mistake of Alan Lutz. Zbyslaw