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

To: Serge Collins who wrote (9956)	3/3/1999 1:29:00 AM
From: pat mudge	Read Replies (1) \| Respond to of 18016

Serge --- Would you please post Volker Jung's exact words regarding companies being "grossly overpriced?" My understanding is that companies like COMS would require a pooling of interest to acquire and can't be done until they're on the NYSE --- some time in 200-2001. This leaves NN out of the running, not because it's overpriced but b/c it couldn't be done with cash. 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. Could you explain your reasoning? Why is NN "too expensive?" Was ASND too expensive at $9 billion? What did Alcatel pay for DSC? For XYLN? And what did TLAB offer for CIEN? Who decides what's too expensive and what isn't? 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. Why are you saying the sector is falling? The ATM sector was up today and based on COMS conference call --- saying they were moving into the high growth area of enterprise and carrier switches in both WAN and LAN --- and on NN's recent conference call saying ATM growth was 45% this quarter, and on Alan's telling the RS conference the G1 contract was solid and soon to be released, I'd expect it to continue to go up. Just another take --- Pat