March 6, 2000 (New York, NY) - In a stock transaction worth $7.1 billion, Alcatel S.A. has agreed to buy the Newbridge Networks Corporation of Canada. Alcatel is the second-largest communications equipment supplier in Europe after Ericsson, and this purchase will give the combined company a stronger line of products to compete in North America against domestic rivals.

Alcatel, with 120,000 employees in over 130 countries, builds next generation networks, delivering integrated end-to-end voice and data communications solutions to established and new carriers, as well as enterprises and consumers worldwide. Newbridge Networks designs, manufactures, markets and services wide area networking solutions for Internet service providers; local, long-distance, and wireless communications companies; cable television carriers; and enterprise customers in more than 100 countries. Newbridge's customers include the world's 350 largest telecommunications service providers. The company employs more than 6,000 people in six continents.

Alcatel S.A. was represented by Stikeman Elliott (Canada) and a team from Proskauer Rose including Stanley Komaroff, Ron Papa, Dick Rowe, Stuart Rosow, Lauren Boglivi and Amanda Nussbaum. Newbridge Networks was represented by Hunton & Williams (NY), Sullivan & Cromwell (NY) and Osler Hoskin & Harcourt (Canada). Newbridge Chairman and CEO Terence Matthews was represented by Fasken Martineau DuMoulin (Canada) and Willkie Farr & Gallagher (NY).