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

To: zbyslaw owczarczyk who wrote (9004)	1/12/1999 6:44:00 PM
From: Glenn McDougall	Read Replies (1) \| Respond to of 18016

Business world is just about to talk about Newbridge! For anyone who can please tune. Regards Glenn

To: zbyslaw owczarczyk who wrote (9004)	1/12/1999 6:52:00 PM
From: Glenn McDougall	Respond to of 18016

News World interviewed Dave Powers from Edward Jones. Not much to interview.

To: zbyslaw owczarczyk who wrote (9004)	1/12/1999 11:59:00 PM
From: pat mudge	Read Replies (1) \| Respond to of 18016

Tomorrow's Financial Times. This may be the ultimate game of "telephone." <<< WEDNESDAY JANUARY 13 1999 Americas LUCENT: Telecoms group may finally marry US telecoms group aims to find a suitable partner in Ascend, writes Roger Taylor Lucent Technologies, the leading US maker of telecommunications network equipment, has taken a long time hammering out its offer for Ascend Communications, the data networking company. The two have been in talks for months and a deal has always seemed likely. Although both sides deny it, each needs the other. Telecoms companies, which now manage increasingly large amounts of computer data as well as telephone calls, need machines to handle both. So traditional telecoms equipment makers have had rapidly to buy expertise in data networking. Last year, Nortel, the Canadian telecoms equipment company, bought Bay Networks. At the time, Lucent was exploring a tie-up with Cisco Systems, the leading data networking company. Since that failed, Lucent has been eyeing the alternatives. Ascend has been the obvious target because of its focus on the so-called "carrier class" market - big machines used to drive the networks of internet service providers and telephone companies. The only other large independent US data networking firm, 3Com, focuses on equipment for home and business use. Lucent has been trying to build its own data-networking business in-house with a string of smaller acquisitions. However, it does not have the luxury of time. The big telephone network operators are deciding on their future equipment needs now and Lucent must show it can deliver. The possibility of a deal last autumn was stymied by the stock-market weakness which saw both companies' shares fall sharply. Since October, Lucent's shares have soared from about $60 to over $109, valuing it at about $150bn. Ascend has had a rougher time. Its shares, now trading at about $76, have still not managed to beat their high of $77¾ in January 1997. If Ascend's directors, who met yesterday, and its shareholders decide to accept Lucent's offer, Lucent's problems will just be starting. The reason for the failure of Cisco's talks with Lucent, and one of the most frequent doubts expressed about Nortel's acquisition of Bay Networks, is the problem of integrating the entrepreneurial west-coast business culture of the data-networking companies into much larger, more bureaucratic telecoms equipment makers. Lucent has no history of successful large acquisitions in its two years as an independent company. Further back, when Lucent was part of AT&T, the picture is no more encouraging. Richard McGinn, Lucent chief executive, was president of AT&T's computer arm when it launched its disastrous purchase of NCR, the computer company. The biggest losers from any link-up between Ascend and Lucent are Cisco, Lucent's biggest competitor, and the European telecoms equipment companies which have yet to build credible data networking businesses. Cisco is unlikely to make a counter-bid for Ascend. It has little to gain in terms of technology and has said its strategy is not to make defensive acquisitions but to buy new technologies. The depressed share price of Alcatel, the French group, leaves it in no position to counter-bid. Siemens of Germany has a link with Newbridge Networks, the Canadian data networking firm, which could lead to a full merger. Ericsson of Sweden is understood to be looking at a number of smaller businesses. And after Ascend and Newbridge, there are no big ones left. There are many positive aspects to the link between Ascend and Lucent. They have similar technical visions - combining internet protocols with the older ATM systems. They have complementary customers - Ascend is strongest among internet service providers and the newer telephone companies, while Lucent's strength is with the traditional Bell phone companies. However, if the deal goes through, the real challenge will be for Mr McGinn to marry the two companies as well as his engineers are able to bring together the new and old technologies. >>>>