Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 204.41

-1.0%

Nov 14 9:30 AM EST

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To: Souze who wrote (59053)	1/13/1999 2:03:00 PM
From: Chuzzlewit	Read Replies (1) of 61433

Souze, looks about right. Remember, the difference between the theoretical price of ASND (now easy to calculate at .825 * LU) and the actual price represents the risk that the deal will fall apart. Also bear in mind that the method I used to calculate the consequences of the deal are based on numbers just before the merger is announced (e.g., yesterday, when we saw numbers bandied about like 20BB and 22BB, which, of course, were nonsense). Notice that the theoretical amount is now about $87 * 216.9MM, or a little less than $18.9 BB. That's the effect of paying a premium in action! The next few days will tell us what the market thinks in terms of synergies. Watch the spread between the theoretical price and the actual price closely. It should narrow as time goes by if the market gains confidence that the deal will go through. TTFN, CTC

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