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

To: Tunica Albuginea who wrote (17281)	2/18/2000 5:38:00 PM
From: Tunica Albuginea	Read Replies (1) \| Respond to of 18016

BLOOMBERG:Alcatel's Purchase of Newbridge ( 7.33 B ) May Come Next Week (Update2) ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Alcatel's Purchase of Newbridge May ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Come Next Week (Update2)ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ By Erik Schatzker ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Alcatel's Purchase of Newbridge May Come Next Week (Update2)ÿ quote.bloomberg.com ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ (Closes shares.)ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Paris, Feb. 18 (Bloomberg) -- Alcatel SA, Europe's No. 2 ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ phone-equipment maker, may announce by Wednesday that it will ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ buy ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Newbridge Networks Corp., a person familiar with the companies' ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ plans said.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Newbridge, a Canadian phone-equipment maker that put itself ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ up for sale in November, may fetch about $40 a share, or ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ $7.33 billion, Chase H&Q analyst Mike Neiberg said. The ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ companies ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ are haggling over price, and Ericsson AB or Siemens AG, which ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ have ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ talked with Newbridge, could step forward as partners if talks ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ fail, the person said.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ The companies want to wrap up the agreement before Newbridge ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ shares begin trading on Wednesday, the person said. Newbridge, ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ which reports earnings late Tuesday, has told analysts that it ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ could beat forecasts of 11 cents a share. That could lift the ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ stock and make a purchase more expensive for Alcatel. ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ ``Alcatel would probably be happy to see Newbridge stock go ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ up a bit to dispel the notion that what they're buying is ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ damaged,' said analyst Jim Kedersha of SG Cowen. ``But not too ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ much because they'd have to pay more.'ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Newbridge, Alcatel and Ericsson officials declined to ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ comment. Siemens spokesman Peter Gottal said the company isn't ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ in ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ talks with Newbridge.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Alcatel's negotiations with Newbridge were reported by the ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Globe and Mail and the Wall Street Journal.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Newbridge shares fell 2 1/2 to 32 7/8 in New York Stock ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Exchange trading. They've risen 46 percent this year on ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ speculation of a sale. Alcatel fell 4 3/16 to 47 3/8.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Alcatel's Spreeÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Alcatel has spent $8.5 billion in the past 17 months to add ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ equipment and software for data networking and Internet access. ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Still, the Paris company is lagging in sales to North American ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ phone companies, which prefer the asynchronous transfer mode, or ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ ATM, switches that Newbridge, Lucent Technologies Inc., Cisco ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Systems Inc. and Nortel Networks Corp. sell.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Newbridge would give Alcatel the ATM switches, which deliver ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ voice, data and video on a single network, as well as customers ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ such as SBC Communications Inc. and Cable & Wireless Plc. ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ ``The Europeans are behind the North Americans in this ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ market,' Neiberg said. ``They need to make an acquisition to get ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ in and Newbridge is the only major target left.'ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Newbridge founder Terry Matthews, who also is chairman and ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ chief executive, put the company on the block on Nov. 18 after ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ warning in six of the past nine quarters that earnings would fall ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ short of analyst forecasts and losing market share to Lucent. ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Tellabs Inc. held preliminary talks to buy Newbridge in March. ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Those discussions fell through.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Some analysts were skeptical that Newbridge will do much to ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ improve Alcatel's business, because the industry is moving to ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ networks that run on Internet-based technology. ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ ``Newbridge would give them a great position in the ATM ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ market, but it's a short-term fix,' said analyst Eric Burkel of ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Handelsbanken Markets.ÿ ----------- back much later TA