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

To: John Lee who wrote (17190)	2/18/2000 9:24:00 AM
From: James Calladine	Read Replies (1) \| Respond to of 18016

TAKEOVER PRICE: I don't buy the talk of a $42 to $45 price. Can't see TM taking that in this kind of "Tulip-mania" market, because: -- the example of others (recently CS) will suggest some potential sizeable values for the NN interests in the incubator companies, if spun off as IPO's -- outsourcing manufacturing and generally cleaning up the inefficiencies in the organization (even if only started) will suggest much bigger EPS in the future -- there are at least several MAJOR very important highlights in the upcoming product line -- NN has significant relationships with many customers. Not all of these are presently ALA customers by any means For all these reasons, I don't see a lowball offer succeeding. But I do see it triggering OTHER action by interested parties who would be asking themselves the question: "Do I want to have to go against an ALA/NN combination or would I be happier owning NN myself, particularly if I can buy it with paper, and if I can convince investors that it will be accretive to earnings.........?" So I'm hanging in there. Maybe will hedge the downside some more. Best wishes, Jim