Dear Gary,
I agree with your chart and analysis you have made, however, NN will not give LU the immediate presence, penetration, and forward looking potential that LU shareholders are outright demanding.
Strictly by the numbers it is obvious that it would be cheaper to buy NN and several other small players (XLYN), however, the ultimate cost to integrate the company's, may be much higher than "just" the "cost to own" them, and once they have integrated the company's, LU is still not assured a market presence or penetration. As we all know, CSCO and ASND are leaps and bounds ahead of the competition, and the trend appears to have them pulling away from the pack.
ASND fits LU like the cream that fills an Oreo cookie. ASND satisfies virtually every gap and weakness that LU has. LU fulfills the resources that ASND may need to continue to win out customers, advance technology, and ultimately give them the only legitimate chance to surpass CSCO in the Networking arena.
Just my two cents.
Jamie |
