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Technology Stocks : Cascade Communications (CSCC)
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To: Teddy who wrote (3397)4/3/1997 9:24:00 PM
From: Chuzzlewit   of 3743
 
You are correct that the number of shares outstanding of ASND will increase by .7x the number of CSCC shares outstanding, but you must remember that the income generated by CSCC is added to the the income generated by ASND. Presumably, all of this is factored into the current market price of ASND. This kind of merger is called a pooling of interests, where there is no cash involved, and the transaction is tax-free,and the assets of the acquired company are not marked down.
You should not expect further changes in the price of ASND due to dilution of earnings.

Hope this helps,

Paul
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