Other potential bidders, including Swedish telecom equipment maker Ericsson and German industrial and telecom group Siemens, are believed to have dropped out of the race, leaving Alcatel alone in negotiations with Newbridge.
Both Alcatel, the Paris-based telecommunications giant, and Newbridge declined comment. "It's just a rumor," said Newbridge spokeswoman Sarah Miller. "We can't comment on it."
Several telecommunications watchers, industry sources and traders, however, maintained that Alcatel is the likely buyer.
Newbridge has been the target of acquisition rumours since November, when it announced it had hired an investment banker and was open to offers after posting its sixth earnings warning in 10 quarters.
Newbridge shares were nearly five per cent higher on the Toronto Stock Exchange in late trade on Thursday at $51.85. In New York, the stocks gained $1 2/16 to trade at $35 11/16.
According to Reuters, an announcement is expected on Tuesday.
