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

To: Dennis R. Duke who wrote (7659)	11/24/1998 11:37:00 AM
From: Luc Glinas	Read Replies (1) \| Respond to of 18016

Nice start this morning but we are now back at square one, hoping not going to negative territory, it could be a bad sign. Luc

To: Dennis R. Duke who wrote (7659)	11/24/1998 12:00:00 PM
From: Glenn McDougall	Read Replies (2) \| Respond to of 18016

Would 500 million U.S. be enough to get 15% of Newbridge? Newbridge has 174 million shares outstanding so 15% would be 26.1 million shares. They currently trade at ~$27 U.S. and one could assume that a block of that nature would trade at a premium. Perhaps 30-35% ($35.775) $35.775 X 26.1 million shares = ~ $933,727,500 U.S. They need more than $500 million to get their 15% of NN. Regards Glenn

To: Dennis R. Duke who wrote (7659)	11/24/1998 12:21:00 PM
From: Glenn McDougall	Respond to of 18016

<And what if said money gets used in the new management's strategy of acquiring affiliates rather then just partnering through partial ownership.> I agree that Newbridge has hidden value in their affiliate program and they would be wise to purchase a number of them outright. In my opinion the first on the list would be their DWDM Metro play Cambrian. < From the 10/23/98 ML report: "More Pragmatic M&A Strategy We get the impression Newbridge's approach to its affiliate program is becoming more pragmatic. It has recently sold ACC and bought-in Castleton. We also believe that the Company may start to move more towards the buy vs. build option that is has used with its affiliate strategy." It was in the back of my mind from reading the above that this could be the plan. Time will tell us.> Regards Glenn