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Technology Stocks : Cascade Communications (CSCC)

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To: MoonBrother who wrote (2527)2/26/1997 9:08:00 AM
From: MoonBrother   of 3743
 
Comments on the Rumor

ASND and CSCC are both located in mid section of MASS, only 20 miles away to each other. Historically these tow companies have talked about the merger several times. Although in the past year, both have started developing the competing products, each has yet to establish the meaningful competition to the other's core business. CSCC and ASND both have been doing well in the past year, therefore none of them was serious about the merger. Now things are different. 1. CSCO has acquired StrateCom. This has further strengthened its dominated position in the business, and make it more difficult for either ASND or CSCC to compete against it. 2. CSCC's stock price has plummeted from above $60 to as low as $25, this rejuvenated both sides' interests in the possible merger talk. For CSCC, its board is facing tremendous pressure from share holders to rescue its share value, and they themselves are holding tremendous personal interests on it. For ASND, it can now spend the half price as it would spend only half year ago to get CSCC's dominated FR business, and this will not dilute ASND if the price is right.

Let's see how this thing goes!
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