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

To: 4-UR-Eyes-Only who wrote (24838)	11/27/1997 10:25:00 AM
From: frisbsc	Read Replies (1) \| Respond to of 61433

4-UR-Eyes, < ASND at its current price will NOT be a takeover target from management point of view unless there is a hostile bid at $50++ offer. But if ASND goes up to $40+ by 2Q '98, then it can become a merger target with potential bid around $50-$56.> Please help educate me, I would suspect that the lower a stock price is, the less a takeover company needs to offer in order to aquire it. I would appreciate it if you could help teach me why you feel ASND need to increase in price by 66% before it is more likely to be purchased? Thanks alot. Still learning, Spencer

To: 4-UR-Eyes-Only who wrote (24838)	11/27/1997 11:35:00 AM
From: swrdfsh	Read Replies (1) \| Respond to of 61433

Bingo! ASND is no where near being acquired. The more I read this thread the more I am convinced of it. The main reasons are the ones I posted earlier #24705. Management won't/shouldn't accept an offer below $45 or $50. No one in their right mind is going to buy this company for twice the market cap! Product lines are important, but it's far more important to successfully merge cultures! You can change products easier than you can change people. Too many on this thread don't get it and are blindly ignoring this factor. Cisco has done so well by growing with acquisitions because they place a very high priority on cultural integration. If you could rank the networkers according to how easily their management could be integrated into a larger entity, ASND would be at or near the bottom! When you add in the market cap obstical which 4-Eyes points out. . . forget it. There are a lot of things that will have to fall into place perfectly before anyone is going to consider this dog. That's why 6 months is the absolute earliest. I'm now beginning to believe it's gonna be more like 12 months. By then several of the IBM,CPQ,& LU's will have made their moves. A year from now the landscape will be very different, just as it was a year ago. You'll have to wait 6-9 months before enough of the fog clears and you can begin to make a halfass-intellegent guess as to who the players might be. Also keep in mind that statistically it's more likely that ASND remains independent for the next 3-5 years. By then it should have worked through the current problems and we'll all be disinterested in any merger. We'll be flying to the annual meeting in our private jets and laughing about all that crazy talk back in 1997. You see. I am an optimist about ASND. I am not optimistic about a merger anytime soon. swrdfsh

To: 4-UR-Eyes-Only who wrote (24838)	11/27/1997 9:24:00 PM
From: blankmind	Respond to of 61433

why would cpq want to purchase dec? dec is selling off its network division (cabletron) and its alpha division (intel). dec pc's and laptops? the mini's are in decline and vms is history, even dec is betting on microsofts nt. ppathworks, i do not think so. unix? maybe cpq would want cpq's field support, which is top notch, but current valuation for dec is 8 billion. no way does cpq purchase dec.

To: 4-UR-Eyes-Only who wrote (24838)	11/27/1997 9:33:00 PM
From: blankmind	Read Replies (1) \| Respond to of 61433

i do believe cpq is out to purchase a networking company, i do not think coms (see post 24829) or dec. there are many choices for cpq to purchase, including asnd, nn, ... just look at the list gary posts of network stocks. a hostile right bid now for asnd at $40 would probably work, mgmt would not enjoy it, but they may not have a choice.