Invitation to Ericsson Press and Analyst Conferences:
Last Update: 7:19 PM ET Dec 19, 2006
STOCKHOLM, SWEDEN, Dec 19, 2006 (MARKET WIRE via COMTEX) -- Ericsson (ERIC) and Redback Networks Inc. (RBAK) have today announced that they have signed a definitive agreement under which Ericsson will acquire Redback for USD 25.00 per share, or an aggregate price of approximately USD 1.9 billion. The offer represents a premium of 60 percent to Redback's [90-day] volume weighted average stock price.
PRESS CONFERENCE AND LIVE WEBCAST:
The press conference will begin at 9am CET (8am UK time, 3am EST and 5pm local time Japan) at Ericsson headquarters, Torshamnsgatan 23, Kista, Sweden. Ericsson President and CEO Carl-Henric Svanberg will comment on the announcement and take questions.
A live webcast of the press conference will be available on the internet at
www.ericsson.com/investors
and
www.ericsson.com/press
CONFERENCE CALL FOR ANALYSTS, INVESTORS AND MEDIA:
The conference call for financial analysts, investors and media will begin at 3pm CET (2pm UK time, 9am EST and 11pm local time Japan). Svanberg will comment on the announcement and take questions. Please call in at least 15 minutes before the conference call begins. Because there is usually a large number of callers, it might take some time before you are connected.
A live audio webcast of the conference call will be available on the internet at www.ericsson.com/investors and www.ericsson.com/press.
The call-in numbers for the conference call are: Sweden: +46 (0)8 5352 6408 UK & Europe: +44 (0)20 7806 1955 U.S. & International: +1 718 354 1388
REPLAY:
A replay of the conference call will be available from about two hours after the completion of the conference call and will be available until December 22, 6pm CET.
Sweden: +46 (0)8 5876 9441 UK & European replay number: +44 (0)20 7806 1970 U.S. replay number: +1 718 354 1112 Replay access code: 9817420#
An on-demand audio webcast of the press conference and the conference call will be available on the internet at www.ericsson.com/investors and www.ericsson.com/press during the day. Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world.
Read more at www.ericsson.com
Copyright Copyright Hugin ASA 2006. All rights reserved.
WASHINGTON (MarketWatch) - Sonus Networks Chief Executive Hassan Ahmed said Wednesday that Ericsson LM's proposed $2.1 billion acquisition of Redback Networks Inc. could accelerate the migration toward "next-generation" network technology and lead to all kinds of new services for consumers in a few years.
The decision to purchase Redback (RBAK), Ahmed said, indicates that Ericsson and other traditional equipment vendors are finally realizing the potential of the new technologies.
"Incumbent suppliers are waking up and moving the ball forward to build the broadband architecture of the future," the Sonus (SONS) CEO said in an interview with MarketWatch.
For decades, Ericsson (ERIC) has been a leading provider of circuit-switched or "legacy" equipment used in networks of large communications companies. Yet carriers are increasingly removing older gear and substituting new Internet-based technologies.
Internet-based technologies are cheaper to operate in the long run and better suited to enable phone or cable companies to offer the so-called triple play - voice, video and high-speed Internet service. In the U.S. and other developed nations, the race is on to see who can deliver all the services a customers needs, all on one bill.
The problem with older technologies, Ahmed said, is that they limit the choices of where and when a customer can receive a service. "There's only one way to watch your cable channel - on your TV," he said.
Newer network technologies, some of which are known as IP multimedia subsystems, would allow carriers newfound flexibility to tailor their services to the needs of each individual customer, he said. Any device connected to a network could receive virtually any service.
For example, customers could watch TV on their mobile phone or computer, or receive text or wireless messages on their television.
"IMS knows who you are and what services you can have," Ahmed said.
Sonus, based in Chelmsford, Mass., develops equipment that helps carriers to deliver Internet-based phone service. San Jose, Calif.-based Redback makes products that help network operators to deliver television and other services over the Internet. The companies are not direct competitors.
Like Redback, Sonus has developed a good reputation for its technology and products and has struck deals with four of the world's five largest network operators, Ahmed said. He estimate that about 20% of the world's Internet-telephone traffic crosses over technology supplied by Sonus.
Asked if Sonus has been approached by potential suitors, Ahmed declined to comment. He said the company is working every day to improve its products and believes Sonus could be a long-term competitor in the industry.
Competitors of Sonus include the much-larger Nortel Networks Inc. (NT) and Alcatel-Lucent (ALU), the recently combined French-American entity. One reason Alcatel sought to acquire Lucent was to gain access to its promising IMS-related technologies.
Jeffry Bartash is a reporter for MarketWatch in Washington.
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