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Technology Stocks : Ascend Communications (ASND)
ASND 206.52-1.2%Nov 25 3:59 PM EST

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To: Peppe who wrote (54391)9/17/1998 11:03:00 PM
From: gbh  Read Replies (2) of 61433
 
What happens to ASND stock if LU buys NN instead ???

A better question might be, "What happens to LU stock if they buy NN?"

I believe LU only wants a very healthy company. One that will allow them to compete head-on against CSCO where they have a chance of winning, and where they are comfortable. I think LU will be very happy "owning" the carrier space. They don't get this with NN, FORE, COMS, CS, etc.

Will they overpay? They will probably have to. Will it be 70? I doubt it. I think Mory will be happy with an announced deal of 60'ish and a downside collar.

Its also likely that by the time the deal closes, ASND shareholder could get 70 or even 80. Remember what happened to TLAB and CIEN shortly after their deal was announced. The stocks flew to 90 when the synergies of the deal were understood. Of course, CIEN blew-up but let's forget that little detail, as its not really relevant to this story. :)

Gary
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