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Non-Tech : Amati investors -- Ignore unavailable to you. Want to Upgrade?

To: Cliff Wood who wrote (29175)	11/22/1997 9:10:00 AM
From: jttmab	Respond to of 31386

Cliff, I would think that if you wanted the pure ADSL play, Westell might be better than most. They have some initial contracts including the ones that they picked up through the TI acquisition; they have an agreement with TI to get the early ADSL DSP chips. On your point of being a marginal supplier..it seems that if you want a pure ADSL play, buy definition that you'll end up with that risk in any event. Westell has been beat up lately in stock price, so perhaps they're a good buying opportunity. On a separate note, if there is an additional offer to buy Amati, 3COM could be an interesting possibility. From the Telechoice news, it seems like they have been losing their "brain trust" in xDSL to the startups and I would imagine that they wouldn't want to be left out. I'm admittedly amazed that TI would pay $395M for Amati's intellectual property and their DSP applications capability. But given the purchase is of "fair value", the xDSL end item business could be viewed as having a lot higher value. As 3COM, I would look at the possible acquistion with a structuring that would let the Amati people feel like they're in a startup, i.e., equity value as far down the organization as possible, and transfer in some 3COM management to do the business management. Best Regards. Jim