Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 196.98

-1.2%

3:07 PM EST

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To: Techwatch who wrote (61152)	6/4/1999 3:18:00 PM
From: The Phoenix	Read Replies (1) of 61433

Is it a function of folks that invest in ASND to be hostile? I don't believe I deserved that response. Nonetheless...let me share a little more. Yes, The deal to purchase STRM was a one for one or $50 whichever what higher on the date of the merger. This was a dilutive event. In order to soften the blow of the purchase and to signal their committment to STRM, CSCO began raising cash by divesting CSCC securities. Now, it would be foolish do dump a security all at once if you're holding a large quantity so CSCO metered out the shares over time. This isn't rock science. So, Techwatch - if you look at the purchase of STRM on a transactional basis you would be correct - CSCO didn't purchase STRM with proceeds from CSCC. However the transaction costs were indeed covered by the sale of CSCC. Hell everyone in the industry was laughing that CSCO was buying STRM with money it made from sale of CSCC shares - it was common knowledge. OK.. it wasn't a direct transaction but the correlation was quite tight...as admitted by yourself in your last post where CSCO began divesting CSCC stock as soon as the STRM merger was complete. TO assume they were independent activities given CSCC's strong presence in the market would be putting blinders on. SO, back to the orginal discussion. CSCO so believed in thier committement to STRM (right or wrong) that they eliminated their position in CSCC and put the money to work building their own valuations or into other start-ups which could be spun-in later. This is direct contrast to ASND holding CSCO as an investment... OG <still laughing>

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