MM This is worth reading Lee
MAKATI CITY, PHILIPPINES, 1999 FEB 2 (NB) -- By Joel D Pinaroc,
Metropolitan Computer Times. The acquisition of telecommunications
supplier Lucent Technologies [NYSE:LU] of networking company Ascend
Communications [NASDAQ:ASND] is predicted to be the biggest merger
for this year, with the figure involved reaching $20 billion,
according to Kurt Bauer, vice president of product marketing,
Access Switching Division of Ascend.
Although the Lucent-Ascend deal is not yet closed, he said the
formal announcement of the merger will be held in
July this year or even earlier.
Bauer was in the Philippines late last month to promote Ascend's
MultiVPN services.
Under the terms of the Lucent-Ascend agreement, which was approved
by each company's board of directors, each share of Ascend stocks
will be converted into 0.825 shares of Lucent. Based on Lucent's
most recent stock closing price of $107-7/8, the transaction
would be valued at $20 billion.
"Lucent offered a very good proposal to the stockholders of
Ascend," Bauer commented.
In terms of organization and reorganization, Bauer said plans are
still being completed and reviewed by the two companies. He added
that legal issues concerning the merger are also being addressed.
"We can't comment much on the details as the deal is not yet
closed," Bauer said. "But the merger will definitely push through
this year, as early as April."
Bauer added that like most mergers, the Lucent-Ascend merger would
benefit both companies, which will now be able to leverage each
other's strengths in the global networking market.
For now, however, Bauer noted that Ascend would continue its
"usual" operations, at least for the whole of 1999.
Lucent Technologies for its part announced that it has signed a
definitive agreement to merge with Ascend Communications in a bold
move to become the leader in communications and networking.
The transaction is set to be completed during Lucent's third fiscal
quarter, which ends June 30, 1999, and will be accounted for as a
"pooling of interests."
The transaction is also expected to strengthen Lucent's business
strategy of providing voice, fax, and video, among other network
services, using Ascend's leadership in networking technologies such
as wide area networking (WAN), and virtual private networks or
VPNs.
Reported by Newsbytes News Network: newsbytes.com
|
