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Technology Stocks : Lucent Technologies (LU)

LU 2.820

0.0%

Nov 7 9:30 AM EST

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To: mauser96 who wrote (5695)	1/21/1999 2:25:00 PM
From: Doug	Read Replies (2) of 21876

L.M.L: I fully concur with your observations. I did a little post take over maths which highlights that finding. LU: Shares 1320m ; Rev/q= $9204m ; Income=$1414m ASND: Shares 305m ; Rev/q=$475m ; Income=$69.8m New LU: Shares 1625m; Rev/q=$9675m; Income=$1484m Prorata based on existing performance w/o any growth. New LU: Shares 1625m ; Rev 11331m ; Income=$1741m You will see that if you allow for 15% growth there is a large shortfall in revenue and earnings for the new Company. After a Merger there is always a period of digestion when the synergies of cost savings have to be proven. Such synergies must come from reengineering to eliminate any duplication. A large number of jobs will be lost & their cost borne as restructuring expenses. Small Investors may be wise to watch from the sidelines till the restructuring announcements are made and digested by the street.

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