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Technology Stocks : Cascade Communications (CSCC)

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To: margin_man who wrote (3435)	4/7/1997 5:59:00 PM
From: Maverick	of 3743

Ascend Communications (ASND): Cascade Communications (CSCC) announced that they will merge with ASND (0.7 shares of ASND per share of CSCC). Based on Fridays (3/28) close, ASND is paying roughly $36.40 per CSCC share or a 28 percent premium to CSCCs closing price. There are no collars to deal. This combination is a testament to the consolidation of the networking industry and the fact that niche players are having to align in order to compete with Cisco and other larger combines. The combination is actually a good fit but ASND is buying a declining business. Cascade also pre-announced a disappointing first quarter which did not help the situation. Cascade has been suffering from increasing competition from ATM/Frame Relay vendors like NorTel and Stratacom. Also the increasing switch to ATM on the WAN is taking away market share from Frame Relay vendors. Needless to say, this increases the competitive landscape with parties like Newbridge Networks a significant competitor in this arena. By Bill SChaff

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