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Technology Stocks : Cascade Communications (CSCC)

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To: (no name provided) who wrote (2020)1/31/1997 11:57:00 AM
From: ioioioi   of 3743
 
In addition to what Lyle said I'd like to add that there are about 4 or more factors that B schools teach during M&A classes that make a decision to merge. Not necessarily in that order.

1. Short term wins for both companies
2. Product Mix
3. Geographical distances
4. Company culture
5. Long term wins

Look at all of Cisco's mergers and you'll notice this theme... Geographical distance is a *big* factor for them.

If you have read the news item that Cisco has purchased 50+ acres of land in San Jose and RTP you know that they plan to expand there. Why would a CEO want to plonk down tens of millions of dollars to move all employees from Mass. (where I think Cascade is) when he can spend a factor less and move them from Santa Clara/San Jose to San Jose? (where Stratacom is).

Its also common sense practice to keep all related business entities close together. (MandA 101)

makes sense, does it not?

No offence meant or taken.
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