Dave, I really liked your post, and find it very, very, interesting.
>>>>>>>
>>Right now Ericsson is looking to acquire a few networking companies about the size of Westell
Eric; I'm starting to think Westell will be acquired. I also think the most likely suitor is Lucent, but I don't think we'll see it till Oct when Lucent can use pooling of assets accounting. If Westell were to be sold for cash the trust would lose a fortune to taxes, I think it would have to be a stock deal.
Ericsson & Westell were the other finalists in the bidding for the JPC contract. Think of the implications for Lucent if Ericsson were to buy Westell. I think Lucent might want to buy Westell just to keep Westell's knowledge of the SLC DLC's, 5ESS etc in house. Just for the sake of argument, to prove the point, imagine what would happen if Alcatel were to buy Westell, Alcatel would have solutions for the Litespan, Lucents SLC and maybe 5ESS. Can Lucent afford to take that risk?
<<<<<<< |
