The board of Canadian Wan specialist Newbridge Networks is considering the spin-off of a separate company after rumours of a high-level split over the future of its Lan technology.
Sources close to Newbridge said senior members of the firm were meeting in Canada to discuss the issue. They claimed chairman and CEO Terry Matthews and president Peter Somnerer were at odds on whether to create a separate division.
Matthews is believed to favour the idea of a distinct Lan company, while Somnerer is more cautious.
One source said Newbridge had become increasingly concerned about its Lan offering since the Cisco/Stratacom buyout, which gave Cisco expertise in ATM and frame relay Wan technology. 'The firm has realised it needs to put more emphasis on Lan products such as its Vivid ATM lines ,' he said.
Another source close to the company said: 'The Lan technology really needs an indirect channel strategy, and this requires people and channel know-how that Newbridge just doesn't have.'
Paul Mountford, Cisco UK MD, said: 'Newbridge's expertise is in the wide area. If the wheels have fallen off and they are breaking it up to see what's wrong, maybe the people driving haven't got the answers.'
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