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

To: Bob Howarth who wrote (17920)	3/20/2000 6:58:00 PM
From: zbyslaw owczarczyk	Read Replies (1) \| Respond to of 18016

Newbridge's Keating on Acquisition by Alcatel: Company Comment By Eric Sylvers Venice, Italy, March 20 (Bloomberg) -- The following are comments by Brian Keating, executive vice president of Newbridge Networks Corp. Keating spoke at a telecommunications conference in Venice, Italy. Alcatel SA, Europe's No. 2 phone-equipment maker, agreed last month to buy Newbridge for $6.8 billion in stock and debt. Newbridge gives Alcatel equipment that delivers voice, data and video on a single network. On what Newbridge brings to Alcatel: ``I think Newbridge brings the core which is our very strong relationship with incumbent carriers. Alcatel has been trying to penetrate that core and hasn't really been able to, we allow them to do that.' On what Alcatel offers to Newbridge: ``One of the reasons Newbridge was so keen to get an alliance with somebody big like Alcatel was for size. You may have the best technology, but your customers want you to be able to provide services at all times. Alcatel gave us scale and deep pockets. We needed a partner that had a big balance sheet and Alcatel definitely had that.' On potential for an effective integration of Newbridge into Alcatel: ``The challenge to have an effective integration is more of a challenge for the acquiring company. They bought us because we are dynamic, entrepreneurial and because we think outside of the box. We can move quickly and have an enterprising spirit. ``You don't pay the money they did for us and let it waste away unless you are nuts. That is one of the reasons they are putting us in a separate division that will also be joined by the cream of Alcatel. People at Newbridge are very comfortable with the prospect of the way things are going to go. On future of incumbent phone companies and challenges presented by startup companies: ``We think the incumbent telecommunications companies have a lot of space to take advantage of all the changes that are brought by the Internet. It's their game to lose to the startups. The companies that we have helped harness the power of the Internet have seen the result in their share price. ``Any carrier that realizes the importance of retaining their customers will want to look to take advantage of the Internet. The stock market is telling them this, you see the difference between the incumbents that are making changes and those that aren't. ``Internet service providers are the real threat, they are fast, they have an awful lot of money and they understand their customers. As soon as they can deliver voice and video with quality of service they will take the customers of the telecom companies that didn't adapt.'