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

To: jeff greene who wrote (10328)	3/16/1999 7:16:00 AM
From: Glenn McDougall	Respond to of 18016

Newbridge, Telehub 'in discussions' Firm eyes equity stake in Telehub software unit, analysts say Jill Vardy Financial Post, with files from Dow Jones nationalpost.com Newbridge Networks Corp. edged up yesterday on speculation it may buy a stake in U.S.-based Telehub Communications Corp., giving it access to technology that directs traffic through voice and data networks. A Newbridge spokesman declined to comment on the rumour. Analysts say Newbridge and Telehub, of Gurnee, Ill., are discussing Newbridge's taking an equity stake in Telehub's subsidiary, Telehub Technologies Corp. "They're in discussions. I don't know if anything has been consummated yet," said Robert MacLellan, an analyst at CT Securities Inc. He said he couldn't speculate on how much Newbridge would have to pay for a piece of the closely held firm. Telehub Technologies makes software that links voice networks with asynchronous transfer mode (ATM) networks. Newbridge specializes in ATM technology, which moves multimedia signals across large networks at very fast speeds. The equipment made by Telehub helps take data traffic off voice networks and on to dedicated data networks, relieving congestion on the voice networks. Many other companies have developed similar technology, and all the major telecommunications equipment companies are either buying it or developing it. "It's almost a prerequisite if you want to play in the data game at all," said Mr. MacLellan."Not having it would be a strategic faux-pas." On a conference call last month, Alan Lutz, Newbridge's president, said Newbridge had to pass up a chance to bid on a recent contract to sell equipment to British Telecommunications PLC because it didn't have its own voice-data traffic shunt. This isn't the first time Newbridge and Telehub have done business. Another Telehub subsidiary, TeleHub Network Services, operates its own ATM network using switches bought from Newbridge. Under chairman Terry Matthews, Newbridge has built or obtained about 25 affiliated companies. Shares in Newbridge closed up 70¢ to $47.70 yesterday in Toronto.