>>I don't believe we will see a merger or buyout anytime soon
Jeremic; No talk around the ol' coffee machine this time hey<G> I'm going to second the points Eric raised. I think Westell's problem can be summed up in 2 words "pricing pressure." I don't see how Westell can compete with Alcatel in this respect. You mentioned Bell Atlantic DMT, you know ALA wants this contract, might not be the reason DSC was purchased but you can bet it entered into it. If Westell makes a solo bid low enough to secure the contract will they make any money on it? Cisco is also going to be in there aggressively bidding on this contract as well, I think the US West contract was part of the reason Netspeed was purchased. Pairgain, COMS, ERICY, they'll all be there trying to get this contract. The ONLY way Westell can compete with the likes of ALA & Cisco is with the help of deep pockets like Lucent. You mentioned there wasn't much risk in waiting, not much downside, imagine where Westell would be a year from now if the lose BEL DMT & BT to ALA. ALA is in trials with BT as we speak, where would Westell be if FTEL/WSTL get an initial CAP contract and ALA ends up with DMT.
The purchase of DSC by ALA is a direct threat to Lucents dominance in the DLC market. Westell has IP to assist Lucent in their fight with ALA in this market, IP which can be used against them if ALA were to purchase Westell. There are other market factors Dr. Tech mentioned as well that put Westell in a near term position where they have some leverage to negotiate a favorable deal.
I think the ALA purchase of DSC changed the DSL landscape and not in Westells favor...Can Westell make it on its own?...We'll have to put our faith in the board & trust they'll do what's in the best interest of shareholders. IMO now might be the best time to get big brother to help fight some of these bullies. I think you're going to see a deal announced before BEL DMT. Dave
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