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 : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: Ron Dior who wrote (2722)	5/18/1999 1:33:00 PM
From: Foo Bar	Read Replies (1) \| Respond to of 14638

Ericsson is talking to NT for takeover or taking a stake Tuesday May 18 1:16 PM ET Ericsson Merger Talk, Spanish Deal Fuel Nortel Stock TORONTO (Reuters) - Shares in Nortel Networks Corp. (NYSE:NT - news) surged Tuesday morning on unsubstantiated market chatter that Sweden's Telefon AB L.M. Ericsson was interested in acquiring it or perhaps taking a stake. News of a small Spanish contract for the company's Internet products also helped. Both Nortel and Ericsson refused comment on the market rumors. On the Toronto Stock Exchange Nortel surged to C$113.25 early in the day, edging closer to a 52-week record of C$114 before settling back. The stock was up C$4.20 to C$111.10 on more than 1.2 million shares at midday. On Wall Street the stock jumped $3 to $76.25. When asked about the gossip, Nortel spokesman Jeff Ferry said: ''We never comment on rumors.'' In Stockholm, Ericsson spokeswoman Pia Gideon told Reuters that the takeover-minded company would not comment on such rumors. ''What we've said is that our acquisition strategy is to focus on companies that complement our own technology rather than add market share.'' Last month Ericsson said it did not rule out making large acquisitions in the data networks area. North American analysts were split on what was causing the rise in Nortel shares Tuesday. Analysts, who declined to be identified, said an unsubstantiated rumor that Ericsson had expressed an interest in Nortel was making the rounds. Combined, the two would make a formidable force but Ericsson would have a difficult time swallowing the elephantine Nortel, they added. Analyst Robert Wilkes, at Brown Brothers Harriman, credited the Nortel rise to Tuesday's news that the Spanish unit of British Telecommunications Plc will create a nationwide Internet telephony and multimedia network using Nortel technology. Terms were not disclosed but observers said the deal was probably worth about $40 million. Wilkes said the wider implications of the agreement -- that the melding of voice, video and data over the same line was creeping closer to everyday use -- were prompting Nortel's price rise. ''I think the announcement of the Internet telephony and multimedia network in BT's Spanish subsidiary is probably a plus. Not necessarily so much because of the dollar amount ... but I think investors could be potentially taking it as a signal that Internet telephony and multimedia is moving a step closer to mainstream,'' Wilkes said. ($1-$1.45 Canadian)