Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: micromike who wrote (9951)	3/3/1999 12:41:00 AM
From: Serge Collins	Read Replies (1) \| Respond to of 18016

Mike: COMS warning is more bad news for this sector and I don't think takeovers will save who's left. You mention Siemens as a potential buyer for COMS but that flies in the face of what Volker Jung, the head of networking at Siemens said last week, and that is that Siemens considers these companies grossly overpriced, and they will not spend that much money on an acquisition. That would seem to indicate that if they do make an acquisition it will be similar in size to Alcatel-Xylan, that is less than $3 billion. FORE would be the only one to fit that bill with a market cap under $2 billion, NN has a market cap of around $5 billion so a buyout of NN would cost a potential suitor upwards of $7 billion, that's just not going to happen despite what some on this thread like to believe to the contrary. NN is simply too expensive and it will remain independent or merge with a competitor -- no one is going to buy NN. That's the problem with NN, it's in a no-man's land as far as value, too big to be acquired and probably too small to compete effectively. Anyone seriously wanting to acquire NN would wait for the market cap to fall well below $3 billion and the way things are going in this sector, I wouldn't rule that out.