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

To: Peppe who wrote (9940)	3/2/1999 5:06:00 PM
From: pat mudge	Read Replies (2) \| Respond to of 18016

From Dow Jones: <<< March 2, 1999 Alcatel-Xylan Deal Thins Data-Networking Merger-Target List By JOHANNA BENNETT Dow Jones Newswires NEW YORK -- If you're looking for a data-networking company to buy, the pickings have gotten pretty slim. Analysts agree that with Alcatel Alstholm's (ALA) planned purchase of Xylan Corp. (XYLN), the field of potential takeover candidates among data-networking companies has shrunk considerably. Among the major takeover targets, Fore Systems (FORE) remains a name bandied about. But analysts contend that companies looking to purchase data-networking firms, especially those with asychronous transfer mode, or ATM, technology, must now consider either second-tier companies or one of several small privately owned startup firms. "The pickings get slimmer every time one of these deals goes by," said Andy Schopick, an analyst for Nutmeg Securities. "But there are certainly a lot of little guys out there to buy." The same merger mania that hit other sectors struck the data-processing companies last year, resulting in a number of major deals. Northern Telecom Ltd. (NT) recently bought Bay Networks Inc., and Lucent Technologies Inc. (LU) is acquiring Ascend Communications Inc. (ASND). A major factor among those mergers has been the desire by telecommunications firms to acquire ATM technology. Those companies who have not already developed their own capabilities have little choice but to buy already existing companies. And so far, the list of potential buyers includes mostly European firms, such as L.M. Ericsson Telephone Co. (ERICY) and Siemens AG. But most of the well-known takeover targets have been grabbed up by other companies or are priced too high for realistic consideration. Cisco Systems Inc. (CSCO) is too large and expensive to be realistically considered a potential acquisition. But Fore Systems remains a topic of speculation, as does Newbridge Networks Corp. (NN). And some say that 3Com Corp. (COMS) is also a takeover target. "There will be less activity from here forward because a lot of the names have been spoken for, unless you go buy the second-tier companies," said Martin Pyykkonen, an analyst for CIBC Oppenheimer Corp. Among the start-up companies, potential targets include voice-data integration companies, as well as terabit router companies, Schopick said. "I would not be surprised to see any of these go," said Nutmeg's Schopick. - Johanna Bennett; 201-938-5670 >>>>