Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 210.50

+0.5%

Nov 21 9:30 AM EST

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To: pass pass who wrote (26640)	12/6/1997 3:20:00 PM
From: mark alan rosenberg	Read Replies (2) of 61433

A $35/ share buy-out will not be accepted. 8-8.5X revs may be. That puts the buy-out price at: 8.5X revs ($1.2 bil trailing) = $ 10 bil 10 bil / 199 mil shares (fully diluted) = $50/ share Here's what is in it for the acquirer: Cost of acquisition ~ $500 mil Buy-Out $10 bil Net Capture Cash& Eqv -$600 mil Cost 9.9 bil ASND theoretical scheduled growth rate of revs 30%/ year '98 sales $1.63 bil net $265 mil net margin 16.5% * '99 $2.12 bil $340 mil $1.80/ share '00 $2.76 bil $449 mil $2.38/ share '01 $3.6 bil $586 mil $3.10/ share '02 $4.7 bil $750 mil $3.96/ share This should be a great acquisition for Lucent, NT, or CPQ when they have tremendous leverage of price to book using a share swap. Using a share swap, ASND should see nothing less than $45/ share. Any opinions, Mark

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