Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 212.55

+1.2%

12:59 PM EST

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To: Steve Rolfe who wrote (27272)	12/9/1997 7:28:00 PM
From: sepku	Read Replies (2) of 61433

>>>Why do you suppose Lucent and Ascend have not come out and stated that they are not talking<<< The reason is simple: if ASND or LU were to not follow a strict "no comment" policy regarding rumors and speculation, then they would be adversely affected in the future. For example...if one of the companies were rumored to be in talks to aquire another, and they denied the rumor, then they would be expected to do so for every other rumor that emerged in the future. Someday they might truly be in talks with another company and due to certain sensitivities they wish it to be kept under wraps (otherwise it would be public info), but if a rumor was flying and they said "no comment", people would assume that means "yes" since otherwise they would have denied it like last time. Then rival companies could act on this knowledge. Or what if the aquiree's stock shoots up in expectation of a buyout? More costly for the aquirer. What if the talks then break off? Aquiree's stock crashes. Therefore the best policy is to not comment on rumors and/or speculation. This protects the companies' best interests. Style Pts.

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