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Technology Stocks : Cascade Communications (CSCC)

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To: Bill Edwards who wrote (3331)4/1/1997 3:47:00 AM
From: Robert Scott   of 3743
 
Ascend can couch this acquisition in terms of long-term potential and there definately is some but there is also no question this was a VERY DEFENSIVE move on Ascend's part. They are paying alot of money even at these prices for Cascade. It is clear that Ascend would have been in big trouble within the next year or two without Cascade.

Appears that to have core networking & remote access is what the carriers want. This is the only way to understand this deal at this price. Now Ascend will need to integrate, position and articulate on the products it will bring to market in order to execute on the acquisition. This has the strong potential to have carriers hesitate until they announce such.
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