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Technology Stocks : Alcatel (ALA) and France -- Ignore unavailable to you. Want to Upgrade?

To: Tunica Albuginea who wrote (1233)	2/22/2000 5:53:00 PM
From: Steve Fancy	Respond to of 3891

News of Alcatel purchase of Newbridge delayed Reuters, Feb 22, 2000 17:44 hrs (All figures in U.S. dollars unless noted) OTTAWA, Feb 22 (Reuters) - Canadian telecoms equipment maker Newbridge Networks Corp. (TSE:NNC)(NYSE:NN) delayed a conference call with financial analysts late on Tuesday so that the announcement that Alcatel (SBF:CGEP) of France is buying it could be made by Alcatel, a source close to the deal said. "My understanding was it was going to be postponed because Alcatel was going to announce the acquisition," said a source close to the deal who asked not to be named. "The word I have is that the two companies had reached an agreement late last night," said the source. "The board of directors had approved Alcatel's deal." The source had no details on the value of the bid, which is widely believed to be an all-share transaction. Newbridge's announcement of the delay came after trading of both Newbridge and Alcatel stock was halted on U.S. and Canadian exchanges late on Tuesday. Newbridge was to report third-quarter results on Tuesday and discuss those numbers with analysts at 5:30 p.m. (22:30 GMT). Newbridge was forced in November to open the door to takeover offers after announcing its sixth earnings warning in 10 quarters. Acquisition-hungry telecoms giant Alcatel has been on a recent expansion drive aimed at boosting its product line and presence, particularly in the rich U.S. market. Last September, Alcatel struck its fifth U.S. purchase in a 12-month period. ($1=$1.46 Canadian) e-mail susan.taylor1@reuters.com, fax 613-235-5890)) Copyright 2000, Reuters News Service

To: Tunica Albuginea who wrote (1233)	2/22/2000 5:58:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 3891

Announcement seen soon on Alcatel-Newbridge deal Reuters, Feb 22, 2000 17:51 hrs OTTAWA, Feb 22 (Reuters) - Trading in both Canadian network equipment maker Newbridge Networks Corp. (TSE:NNC)(NYSE:NN) and France's telecoms equipment firm Alcatel (SBF:CGEP) was halted on U.S. and Canadian exchanges late on Tuesday, raising speculation Alcatel was poised to announce an all-share takeover of Newbridge. The halt came in advance of Ottawa-area based Newbridge's third-quarter results, which are being released on Tuesday. The Financial Times reported Alcatel was readying to announce a $6.5 billion takeover of Newbridge on Tuesday or on Wednesday. An acquisition would conclude a search started for Newbridge in November by investment banker Morgan Stanley Dean Witter & Co. Acquisition-hungry Alcatel has been on a recent expansion drive aimed at boosting its product line and presence, particularly in the rich U.S. market. Last September, Alcatel struck its fifth U.S. purchase in a 12-month period. e-mail susan.taylor1@reuters.com, fax 613-235-5890)) Copyright 2000, Reuters News Service

To: Tunica Albuginea who wrote (1233)	2/22/2000 7:53:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 3891

FOCUS-Alcatel to announce deal to buy Newbridge Reuters, Feb 22, 2000 19:42 hrs (Adds byline, details throughout, analyst comments. All figures in U.S. dollars unless noted) By Susan Taylor OTTAWA, Feb 22 (Reuters) - Canadian network equipment maker Newbridge Networks Corp. (TSE:NNC)(NYSE:NN) has agreed to be purchased by French telecoms gear firm Alcatel (SBF:CGEP), a source close to the deal said on Tuesday. But Newbridge postponed a planned conference call with analysts to allow Alcatel to announce the deal first. "My understanding was it was going to be postponed because Alcatel was going to announce the acquisition," said a source close to the deal who asked not to be named. "The word I have is that the two companies had reached an agreement late last night," added the source. "The (Newbridge) board of directors had approved Alcatel's deal." The source had no details on the value of the bid, which is widely believed to be an all-share transaction. Several analysts cited an unconfirmed news report that Alcatel will swap 0.8 of a common share for each Newbridge common share, which values Newbridge at about $38.40 a share and produces a deal worth roughly $7 billion. Alcatel has for the past couple of weeks been rumored to be Newbridge's lone suitor. The Ottawa-area company put itself on the auction block in November after a series of disappointing quarterly results. Newbridge's announcement of the delay came after trading of both Newbridge and Alcatel stock was halted on U.S. and Canadian exchanges late on Tuesday. Newbridge was to report third-quarter results on Tuesday and discuss those numbers with analysts at 5:30 p.m. (22:30 GMT). But the release of financial results for the quarter ended January 30 has been "postponed until further notice," said Newbridge spokeswoman Sarah Miller. Analysts are now uncertain when they will receive either financial results or news of a takeover. "If this weren't Newbridge, I would be flabbergasted at the chaotic manner in which this has been handled," said Duncan Stewart, fund manager at Tera Capital Corp. "Coming from Newbridge, plus ca change, plus c'est la meme chose (the more things change, the more they stay the same)." Newbridge has been on takeover watch since it hired an investment banker in November and said it was open to offers. The consensus from 17 brokers polled by First Call/Thomson Financial was a profit of 11 cents per share for the quarter, though many analysts suggested Newbridge could beat that number by a penny or two. A source close to Newbridge said the quarter was "very strong" and sales in North America, which had been a weak spot in previous quarters, were up "significantly". That would be a marked difference from Newbridge's last quarter, when it issued its sixth earnings warning in 10 quarters. Soon after, Newbridge said it had hired an investment banker and was open to offers. "Wall Street clearly wants them to get bought and most analysts are saying that's the only way they can survive," said George Hunt, analyst at Wachovia Securities Ltd. "It looks like it's in the cards." Acquisition-hungry telecoms giant Alcatel has been on a recent expansion drive aimed at boosting its product line and presence, particularly in the rich U.S. market. Last September, Alcatel struck its fifth U.S. purchase in a 12-month period. "It's clear to most of us that Newbridge is just too small (to remain independent)," said Paul Silverstein, senior analyst at Robertson Stephens. "In the land of the giants, when you're competing against Lucent, Cisco, Nortel even if you have the best products it's really difficult. Because it's not just about technology...Even when you have the best technology you lose because Lucent has more marketing clout." ($1=$1.46 Canadian) e-mail susan.taylor1@reuters.com, fax 613-235-5890)) Copyright 2000, Reuters News Service