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

To: Robert Scott who wrote (24936)	11/29/1997 9:15:00 AM
From: Gary Korn	Read Replies (1) \| Respond to of 61433

I think Compaq is more interested in the edge than in the center of the network. A good portion of Ascend's value is in the center. While it's not out of the question, I do not expect Compaq to buy Ascend. However, if their long-term goal is to enter the telecom business in a single swoop, there is hardly a better choice and fits in nicely with the LAN equipment of Intel. Robert, Alan Lutz, who heads CPQ's communications division (networking) has made it clear that CPQ wants to be dominant in RAS and will enter the telecom market. CPQ is not interested in staying on the "edge," which is what I had once thought. It will be interesting to see what moves CPQ makes to achieve its objectives. On December 11, it will have about 1.6 billion shares with which to work. (On a 100% diluted basis (i.e., assuming that an acquired entity is worth $0), these shares would be worth about $15/each, for a total of $24 billion). Gary Korn