Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: Gary Korn who wrote (20474)	11/2/1997 10:12:00 AM
From: Jeff Jordan	Read Replies (1) \| Respond to of 61433

I think both stocks would run up to $50 prior to an announced merger. But after that, a quick fall back to $35. $40 would probably be expected. Do you think rumors will start on WS like they did with LU? Thats how I got burned on the MCAF merger,Once the after hours annoncement was made the game was over. MCAF opened -7 Monday after. I would still expect Ascend to take off after the new year. I do expect to see more good company news on products and deals. I also expect the upgrades to start coming in. I think ASND is so beaten down any more weakness in the market will have little effect on the share price. Jeff

To: Gary Korn who wrote (20474)	11/2/1997 12:10:00 PM
From: Chuzzlewit	Respond to of 61433

Gary, the calculation is made as follows: add the market caps of the two companies. This will give the market cap of the merged company. The respective market caps for COMS and ASND are $14,354.8 MM and $5,127.3MM, so the combined market cap will be $19,454.9MM. Now convert ASND shares to COMS shares. Since you are assuming a 1:1 conversion, there will be 188.9MM new COMS shares. The total shares of the merged company will be 188.9 + 345.9 or 534.8MM shares. Divide the combined market cap ($19,454) by the combined number of shares (534.8), and this will give you the expected price per share ($36.376) if the market views the merger as neutral. If the market views the merger as positive the price per share will be somewhat higher, and if the market views the merger negatively the price will be somewhat lower. Regards, Paul