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To: rowrowrow who wrote (6294)	7/11/2001 12:57:16 PM
From: Tim Luke	Read Replies (2) \| Respond to of 8686

rbak..im expecting them to beat the lower guideance but no real big move either way in ah...but there may be another possible bid from jnpr coming and that is why im going to hold here. . ..from 6-26 .+DJ Redback Networks Up For 2nd Day On Takeover Rumors>RBAK =DJ Redback Networks Up -2: Juniper Networks Seen As Suitor By Kathy Chu Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Redback Networks Inc. (RBAK) shares surged for the second day in a row Tuesday on revived rumors that the network equipment provider may be an acquisition target for Juniper Networks Inc. (JNPR). The combination is unlikely, according to CIBC World Markets Corp. analyst Steve Kamman, but talk has abounded for months partly because of recent management changes at Redback. Investors are waiting to see what direction the new executives - including Chief Financial Officer Dennis P. Wolf and interim Chief Executive Pierre Lamond - will take the company, said Kamman. Wolf became financial chief on Jan. 25, after Craig Gentner retired due to family medical issues. Lamond took over as chief executive in May, after Vivek Ragavan resigned to pursue other opportunities. A Redback spokeswoman declined to comment on the takeover rumors and said the company has no news. In a May 21 conference call, however, Lamond said: "We are not for sale. However, we have a responsibility to our shareholders to build the strongest franchise possible, and realize that ultimately this could include combinations, either combining with someone else or someone combining with us." Speculation about Juniper first surfaced in early March, when Light Reading, an online news site covering the optical networking industry, reported that talks between Juniper and Redback had collapsed. Juniper had made Redback an offer following extensive talks, according to the publication, but the deal fell through because of Juniper's declining share price. Scott Raynovich, executive editor of Light Reading, said the story was based on information from high-level sources at Redback. Juniper Networks didn't immediately return phone calls seeking comment. Shares of Redback were recently up 67 cents, or 7%, to $10.18 on Nasdaq volume of 5.9 million shares, compared with average daily volume of 6.4 million. On Monday, the stock rose 6.5%. Still, the shares are well off their 52-week high of $181, set last June. Juniper's shares were recently down 2% to $29.88. On June 13, Redback Networks said its board approved a poison pill provision, a common tactic used by companies to prevent hostile takeovers. "This is an indication that management is trying to control its own destiny," said CIBC's Kamman. The company is unlikely to consider an acquisition until it develops its Internet Protocol routing product, Kamman said. This is expected to be completed in the third or the fourth quarter. The analyst said having a finished IP product would make it more likely that the company would fetch a fair price. There's another hitch to complicate any potential deal. Redback's offerings include products adhering to the SONET, or synchronous optical networking, standard. SONET is a standard for connecting fiber-optic transmission systems. If Juniper acquired Redback, Juniper would be in competition with its sales partners such as Nortel Networks Corp. (NT), which also offers SONET products, Kamman said.