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

To: pat mudge who wrote (9771)	2/23/1999 8:30:00 AM
From: Technopeasant	Read Replies (1) \| Respond to of 18016

This tale about the NN/Siemens partnership being on the rocks just keeps coming back. Wonder where its coming from? Newbridge suing WIC over lost contract Tuesday, February 23, 1999 SIMON TUCK Technology Reporter Ottawa -- Newbridge Networks Corp. said yesterday it is suing WIC Connexus and WIC Western International Communications Ltd. for up to $900-million for the loss of a major contract with the provider of high-capacity wireless services. The claim, filed with the Ontario Court's General Division, relates to a wireless phone network contract that Newbridge and Alcatel SA of France thought they had won last August. The four-year deal, worth between $450-million and $500-million, soured after Shaw Communications Inc. gained 52 per cent of the equity of Vancouver-based WIC last August. Shaw had an existing relationship with Cisco Systems Inc. of California, which has since landed the contract. The deal was announced yesterday. Newbridge spokesman Paul Goyette confirmed that the Kanata, Ont.-based company has asked for $350-million for breach of contract or breach of duty, another $350-million for intentional or negligent misrepresentation of the company's role in the project and $200-million for breach of confidence. He wouldn't comment further. Newbridge issued a statement from Peter Nadeau, the company's vice-president and general counsel: "[Newbridge] viewed the relationship as a partnership and has given Connexus every chance to resolve this matter before filing this claim. We've been working with Connexus in good faith for the past two years since they obtained their LMCS [local multipoint communications systems] licence." WIC Connexus president Robert Watson couldn't be reached for comment and company employees said no one else was allowed to talk to reporters. The lawsuit is just the latest tempest at Newbridge as it prepares to release gloomy third-quarter results today. Newbridge's rocky relationship with its primary partner, Germany's Siemens AG, now appears to be clearly limited to a single-product arrangement as both sides are set to embark on separate shopping sprees. The companies at times over the past couple of years appeared to be moving toward a more comprehensive relationship, perhaps even a merger. A source close to Siemens said those plans are now dead. "There is no more partnership between these companies, except for [one product]." Newbridge said earlier this month that it will miss estimates for its third-quarter profit by about 5 cents a share.