Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: zbyslaw owczarczyk who wrote (17436)	2/22/2000 10:10:00 AM
From: Tunica Albuginea	Respond to of 18016

" Lookin' good "ÿÿÿÿ this morningÿÿ Chicoÿÿÿ : - )ÿÿÿÿ ÿALA and NN up smartly this AM. Smart Money flow positive into ALA and NN since Nov. Look for ALA to return to 50 'ish and NN to follow. At least a 30% increase from current NN levels. Well, time to chalk up another 30% monthly return, Now back to hot JAVA cup, : - ) TA

To: zbyslaw owczarczyk who wrote (17436)	2/22/2000 10:29:00 AM
From: Tunica Albuginea	Read Replies (1) \| Respond to of 18016

The Globe and Mail ,Feb 21, 2000 ( didn't see this yesterday ) TA ÿÿÿÿÿÿÿ Newbridge slump seen helping deal ÿÿÿÿ by Simon Tuck - Monday, February 21, 2000 ÿÿÿÿÿÿÿ globeinvestor.com ÿÿÿÿ Ottawa -- The recent share price declines for Newbridge Networks Corp. and its leading suitor may make it easier to ÿÿÿÿ complete a mammoth takeover deal of the Canadian telecommunications company -- and sell the offer to shareholders, ÿÿÿÿ analysts say. ÿÿÿÿ The stock pullback, which followed reports that Newbridge may be sold to Alcatel SA of France for $6.5-billion (U.S.) in ÿÿÿÿ stock, would increase the size of the takeover premium and therefore make it more attractive to Newbridge's beleaguered ÿÿÿÿ shareholders, analysts say. ÿÿÿÿ "It will make it easier because it makes it cheaper," said Duncan Stewart, a portfolio manager at Tera Capital Corp. in ÿÿÿÿ Toronto. ÿÿÿÿ That price tag would have meant only a 1.5-per-cent premium for Newbridge shareholders, based on the company's stock ÿÿÿÿ price at the time of the reports last week. ÿÿÿÿ Shares of Kanata, Ont.-based Newbridge tumbled 6 per cent or $3.15 (Canadian) to $47.40 on the Toronto Stock Exchange ÿÿÿÿ Friday, the day the reports were published. Before that, the stock had risen steadily since early November. ÿÿÿÿ Newbridge said more than three months ago that it was up for sale, and had hired a New York investment banker to help its ÿÿÿÿ cause. Many analysts say Newbridge will be sold by the end of the month, perhaps as soon as tomorrow, when the company ÿÿÿÿ reports its latest quarterly results. ÿÿÿÿ Alcatel, widely believed to be in serious takeover talks with Newbridge, also saw its a share price fall Friday. Its stock ÿÿÿÿ tumbled $4.19 (U.S.) to $47.37 on the New York Stock Exchange as investors worried that the reported bid value would be ÿÿÿÿ too much for the French telecommunications giant to digest. ÿÿÿÿ A Toronto analyst said yesterday that the stock drops may or may not have an effect on any takeover talks. "It could or it ÿÿÿÿ couldn't -- it depends on the sentiments of the guys involved," he said. "If everybody wants to make a deal work, they'll work ÿÿÿÿ within the situation." ÿÿÿÿ The stock movements would only raise an obstacle, he said, if one side tried to use them as a way to squeeze more out of the ÿÿÿÿ negotiators on the other side of the table. ÿÿÿÿ Newbridge, meanwhile, was hit with another leadership change over the weekend as John Lawlor, the company's top ÿÿÿÿ investor relations official, announced he was leaving immediately. The resignation of a key Newbridge loyalist at this ÿÿÿÿ crucial time creates a hole in the company's executive team and raises a host of fresh questions, according to analysts. No ÿÿÿÿ replacement for Mr. Lawlor has been announced yet. ÿÿÿÿ Analysts said Mr. Lawlor could have left because a takeover deal is imminent and he doesn't see himself having a future ÿÿÿÿ with the buyer, or he already has another job lined up, or an ethical conflict of some sort exists between he and Newbridge. ÿÿÿÿ He may also have left simply because he had grown tired of being a key spokesman for a troubled company that in recent ÿÿÿÿ years has made it difficult for anyone doing his job. ÿÿÿÿ "Why leave now if a sale is so close?" Mr. Stewart asked. "It seems more likely that various stresses of guiding Newbridge ÿÿÿÿ through its last difficult few months may have made him more confident leaving earlier rather than later." ÿÿÿÿ Mr. Lawlor didn't elaborate on his reasons for leaving Newbridge, other than to say he plans to take a break for at least a ÿÿÿÿ month.

To: zbyslaw owczarczyk who wrote (17436)	2/22/2000 10:38:00 AM
From: Tunica Albuginea	Read Replies (1) \| Respond to of 18016

News from The Globe and Mail :Acquisition by Alcatel would lead to pink slips at Newbridge ÿÿÿÿ Acquisition by Alcatel would lead to pink slips at Newbridge: analysts ÿÿÿÿÿÿÿ globeinvestor.com ÿÿÿÿ by Simon Tuck - Tuesday, February 22, 2000 ÿÿÿÿ Ottawa -- Alcatel SA's expected acquisition of Newbridge Networks Corp. will likely mean layoffs for about 10 per cent ÿÿÿÿ of the Canadian communications equipment maker's employees, including most of senior management, analysts say. ÿÿÿÿ That would translate into pink slips for about 600 people. ÿÿÿÿ Analysts said Newbridge's Kanata, Ont., headquarters would bear the brunt of layoffs, perhaps as much as half. ÿÿÿÿ Neither Paris-based Alcatel nor Newbridge has confirmed they are in talks, much less whether there will be layoffs. But ÿÿÿÿ industry sources say an Alcatel acquisition of Newbridge is imminent, coming perhaps as soon as tonight when Newbridge ÿÿÿÿ reveals its third-quarter earnings. ÿÿÿÿ Analysts said yesterday they would expect most of the cuts to come in administration, finance, marketing and, to a lesser ÿÿÿÿ degree, sales. ÿÿÿÿ Newbridge's manufacturing operations, some of which have already been partially outsourced, would also be vulnerable ÿÿÿÿ under a new regime. Analysts expect that few company executives -- including founder and chief executive officer Terence ÿÿÿÿ Matthews -- would be retained after an ownership change. John Lawlor, the company's vice-president of corporate ÿÿÿÿ communications, resigned over the weekend. ÿÿÿÿ "We'll see reductions there," said Michael Cristinziano, a technology analyst at Gerard Klauer Mattison & Co. in New York. ÿÿÿÿ "[But] we're not talking massive layoffs." ÿÿÿÿ Mr. Cristinziano said Newbridge spends about 30 per cent of its revenue on sales, marketing and other administration -- ÿÿÿÿ about twice as much as Alcatel. ÿÿÿÿ Newbridge has about 6,000 employees worldwide, about half in the Ottawa area, while Alcatel has about 120,000 ÿÿÿÿ employees. ÿÿÿÿ The safety zones for Newbridge employees would almost certainly be in the company's well-regarded research operations, ÿÿÿÿ although its older time-division multiplexing (TDM) product teams could possibly be shut down or scaled back. Some of ÿÿÿÿ Newbridge's engineers and other technical people, however, have already left in recent months as the company began to look ÿÿÿÿ increasingly like an operation in trouble. ÿÿÿÿ Others, however, are hanging on so they can cash in stock options with the expectation that a takeover will mean a premium ÿÿÿÿ on Newbridge's share price. ÿÿÿÿ Some analysts say Alcatel might not need to make extensive cuts at Newbridge, particularly since the Canadian company ÿÿÿÿ already reduced its workforce in November by about 700 -- or 10 per cent -- including about 300 in the Ottawa area. ÿÿÿÿ "They've done most of the layoffs already," said Gurinder Parhar, a technology analyst at Dundee Securities Corp. in ÿÿÿÿ Toronto. "I don't think they'll need to do too much more." ÿÿÿÿ But a Toronto analyst, who asked not to be identified, said the 10-per-cent figure could be too low. "I think it's possible ÿÿÿÿ there could be huge layoffs."