Newbridge denies that it has put up the 'For Sale' sign

29 Jan 1999

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Lucent's acquisition of Ascend has put a premium on the remaining wide-area networking (Wan) vendors as consolidation continues to carve up the industry.

The next likely candidates are ATM switching vendors Newbridge Networks and Fore Systems.

Paul Silverstein, senior communications equipment analyst at Banc Boston Robertson Stephens, said: "I don't see Newbridge being taken up over the next 30 to 60 days, but there is a fair chance that one of Lucent's competitors, Ericsson or Siemens, may acquire it."

Jim Slaby, Wan analyst at Giga Information, believes Newbridge is up for sale even though its top executives may publicly be claiming otherwise.

"Newbridge and Alcatel would be a reasonable fit as Alcatel divests from its non-strategic business. It also has a reasonable presence in North America," he said.

Newbridge has fuelled speculation of a purchase by recently shedding three firms from its start-up programme.

Observers speculate this is part of the organisation's scheme to clear the decks of non-core interests to make it attractive for potential buyers.

The company dismissed the claims as coincidences.

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