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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: Bosco who wrote (1549)	12/9/1998 8:51:00 PM
From: WiseGuy	Respond to of 14638

My understanding is that there will be a Lehman's telecommunictions conference tomorrow in NY. Hope NT particiaptes and hope there will be good news...

To: Bosco who wrote (1549)	12/10/1998 10:18:00 AM
From: Kenneth E. Phillipps	Respond to of 14638

An informative post from the Yahoo thread on Cambrian acquisition Nortel dishes out for a promising startup by: salty48 4164 of 4164 Hope is that: Cambrian Systems holds key to quicker Net connections Nortel Networks says it has agreed to pay as much as $460-million in cash for a startup company that is unsullied by revenues, but whose technology promises to eliminate frustrating bottlenecks on the Internet. Nortel, the world's fourth-largest manufacturer of phone equipment, said its acquisition of Cambrian Systems Corp. of Kanata, Ont., will hasten the flow of data between networks in the world's cities and the Internet's fibre-optic backbone. "We're speeding up the on-ramps to the Net," John Roth, Nortel CEO and vice-chairman, said yesterday. "By eliminating the bottlenecks, we will enable higher speeds, higher reliability and lower costs." The acquisition of Cambrian will boost Nortel's efforts to deploy a fibre-optic Internet network in metropolitan areas, a market segment where the telecom company has yet to establish a strong presence -- and one where demand is increasingly frenetic. Cambrian, a Newbridge Networks Corp. affiliate, was launched 24 months ago to develop technologies that speed transmission of digital data down fibre-optic lines, one of the keys to a faster Internet. Its products, which are to be augmented by Nortel's optical technology and deployed in mid-1999, divide lightwaves within fibre-optic cables, improving network capacity and speed without the need for new cables. Mr. Roth said the system will cut the costs of transmitting data by up to 30% for customers such as phone companies and financial institutions, particularly in Europe where the next wave of Internet infrastructure is being developed. Brampton, Ont.-based Nortel said its existing voice-based networks are struggling to cope with the volume of data now being generated in cities arond the world, from New York to Bangkok. "We know of many customers who have been trailing [Cambrian's] products and they are very pleased with them, so we thought, here's a fast way to plug that hole in our portfolio," Mr. Roth said. The need for speed, in network access and time to market, is the imperative behind the deal, which financial analyst Benoit Chotard of Levesque Beaubien Geoffrion Inc. in Montreal called a good one for Nortel shareholders "if you believe what's being said about Cambrian's potential." Michael Cohen, a manager with Toronto-based venture capitalist VenGrowth Investment Fund Inc., said the fund's $2-million investment in Cambrian seven months ago is worth $20-million thanks to the Nortel acquisition. But he said "Nortel has not paid too much" for Cambrian, given the costs in market share of spending 18 months developing its own, comparable technology. Cambrian has attracted a consortium of private investors, including Newbridge chairman Terry Matthews, who personally owns about 25%. His company holds 40%. Proceeds from the sale of its stake in Cambrian will add to Newbridge's cash holdings of about $750-million, which could be used for acquisitions. Analysts also said the deal could be a pre-emptive strike against network-equipment leader Cisco Systems Inc., which is rumoured to have coveted Cambrian. Mr. Roth said Nortel's offer involves payment of more than two-thirds of the purchase price up front, with the remainder due if Cambrian meets certain revenue and performance targets. Expected to close within 30 days, the deal comes three months after Nortel Networks, formerly Northern Telecom Ltd., completed its acquisition of California-based data networking company Bay Networks Inc. in a $9.1-billion (US) share swap. The bulk of the Cambrian purchase price will be written off as research and development costs, Mr. Roth said. Kanata-based Newbridge, which makes and sells networking systems in more than 100 countries, said it will retain access to Cambrian's key products. Posted: Dec 10 1998 9:36AM EST as a reply to: Msg 1 by YahooFinance