***slightly OT***
chuzz.
regarding yesterday's ascension, the LU rumor rears its head again ...
-----
Ascend, Networking Shares Rise on Optimism for Demand
Bloomberg News
December 7, 1998, 4:48 p.m. PT
Alameda, California, Dec. 7 (Bloomberg) -- The shares of Ascend Communications Inc., Cisco Systems Inc. and other network-equipment makers rose amid optimism that phone companies and businesses will buy more of their products to link computers.
Ascend, based in Alameda, California, surged 6 7/8 to 63 15/16, its highest close in almost two years. San Jose, California-based Cisco, the No. 1 maker of networking gear, climbed 1 15/16 to a record 80 3/16.
Phone companies are racing to upgrade old networks or build up new ones to handle the growing popularity of the Internet and mushrooming demand from corporations for data transmission. At the same time, businesses are looking to install more networking gear to route data between departments or even to computers at branch offices in other countries.
"There are expectations that network spending is going to accelerate from 1998 levels," said Paul Sagawa, an analyst at Sanford C. Bernstein & Co.
Other network-equipment makers also rose. 3Com Corp. climbed to a 13-month high of 44 3/8 before closing at 44 1/4, up 1 1/4. Xylan Corp. rose 7/16 to 21 5/8.
Ascend got a further boost from speculation that it may be taken over. Analysts said a purchase of Ascend by Lucent Technologies Inc., the No. 1 phone-equipment maker and an oft-mentioned suitor, could be more viable now, with Lucent up 4 1/4 at 100.
Craig Johnson, principal market researcher with Pita Group, said the higher that Lucent stock rises, the easier it would be to swap for Ascend shares.
"They would have to put less on the table," he said.
Ascend and Lucent declined to comment.
--Erik Schatzker in Toronto |
