Ascend Communications (ASND) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Ascend Communications (ASND)

ASND 197.66

+0.4%

2:53 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Andreas Helke who wrote (48832)	6/17/1998 7:38:00 AM
From: gbh	Read Replies (2) of 61433

Using cash or stock is independent from the accounting treatment. Lucent has so far made acquisitions for cash as well as for shares. Yes, but they have not made a stock purchase of a public company. I think this is because its taxable to shareholders. If they buy ASND for stock now, ASND shareholders effectively sell their stock (and are taxed), and buy the equivalent LU stock. Whereas with pooling, its a non-taxable stock swap. I'm not sure if they are capable of making a non-taxable stock purchase until 10/1. Maybe someone can clarify. This tax means they would have to offer at least 28% more than necessary to make up the tax loss. LU purchases: Prominet - private company, stock. Livingston - private company, stock. Yurie - public company, cash.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next