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Technology Stocks : Ascend Communications-News Only!!! (ASND)

ASND 197.59

-0.8%

Nov 7 9:30 AM EST

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To: Edward J. Edwards, III who wrote (1524)	8/3/1998 9:17:00 AM
From: Tech Bull	Read Replies (2) of 1629

Ascend to acquire Stratus (CNNfn) cnnfn.com Companies to combine for $822M in stock, merge data, telecom technology August 3, 1998: 8:40 a.m. ET NEW YORK (CNNfn) - Ascend Communications Inc. said Monday it will acquire Stratus Computer Inc. in a stock deal valued at $822 million. Under terms of the deal, which both companies' boards have approved, Ascend will exchange 0.75 Ascend share for each of the roughly 24 million shares of Stratus. Ascend said the transaction values Stratus at $33.35 a share. Based on Friday's closing price, the deal represents a 15 percent premium for Stratus shareholders. Alameda, Calif.-based Ascend makes computer networking equipment. The company is said to have made the acquisition because Stratus develops technology that allows telephone carriers to offer services such as caller ID and call forwarding over data networks using Internet technology. Ascend said it will sell Stratus' non-telecommunications businesses. The company also said it expects a $300 million to $350 million write-off, plus an $80 million to $100 million charge in the fourth quarter. The charge will cover the costs of 350 job cuts previously planned at Stratus, along with an additional 150 cuts related to the acquisition. With voice and data networking converging because of Internet technology, computer networking and telecommunications companies have been looking for ways to expand their reach. In June, Canada's Northern Telecommunications Ltd. (NT) acquired Bay Networks Inc. (BAY) for $9.1 billion in stock. Also, rumors have been swirling for months that Lucent Technologies Inc. (LU) will acquire Ascend sometime in the fall. Rumors of the deal sent Ascend (ASND) shares down 7-1/32 to close at 44-15/32 in Friday trading. Stratus (SRA) shares closed at 28-7/8, up 7/8

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