Cowen Weekly Research Highlights [ASND takeover reference]
Published August 24, 1998
The following are some of the major investment themes of SG Cowen Research. Many of these themes are described in greater detail in SG Cowen's printed research
publications.
cowen.com
Industry Highlights
Communications Equipment Industry
Consolidation Expected To Continue
Consolidation in the communications equipment industry has accelerated recently, as highlighted by the announced merger intentions of Tellabs & Ciena, Alcatel & DSC Communications and Nortel & Bay Networks. We believe this activity reflects the confluence of several market and technology trends. We also expect this trend to continue as carriers restructure networks from circuit switched voice systems to packet-based data networks, forcing equipment vendors to shift product families in response. Investment strategies, then, can be focused on the survivors - the larger firms such as Lucent, Nortel, Alcatel and Cisco to name a few - or the likely targets - smaller to mid-sized players such as Advanced Fibre Communications, Newbridge and Ascend. Alternatively, a third type of firm, such as Tellabs, is emerging as an increasingly attractive survivor given its acquisition activities, yet is still acquirable.
James C. Kedersha , Wojtek Uzdelewicz, Blaine Carroll, 8/12
SG Cowen Securites Corporation makes a market in AFCI, ASND, CSCO, DIGI, TLAB and managed an equity offering for AFCI within the last three years. Further information on any of the above securities may be obtained from our offices. This report is published solely for information purposes, and is not to be construed as an offer to sell or the solicitation of an offer to buy any security in any state where such an offer or solicitation would be illegal. The information herein is based on sources we believe to be reliable but is not guaranteed by us and does not purport to be a complete statement or summary of the available data. Any opinions expressed herein are statements of our judgment on this date and are subject to change without notice. SG Cowen Securities Corporation, or one of its employees, including the writer of this report, may have a position in any of the securities discussed herein. The contents and appearance of this report are Copyrightc and TrademarkT SG Cowen Securities Corporation 1998. All rights reserved.
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