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

To: Gary Korn who wrote (25280)	12/3/1997 3:17:00 AM
From: Clare	Read Replies (1) \| Respond to of 61433

Gary, do you have any thoughts about Nortel? In other words, if Nortel were to think of acquiring a data networker, which one of the seven dwarfs would it pick? (Ascend, Bay, Coms, Cabletron, Madge, Fore, Xylan) Also, I haven't done the math, but someone pointed out to me that if you add the market cap of the 7 dwarfs it would still be less than Cisco, who is obviously Snow White in this fairytale. Anyway, back to the Ascend buyout theory. Wouldn't Nortel make more sense since they are not under the pooling of interest restriction that Lucent is under. Or would Nortel go for the enterprise and hit up on Bay or Cabletron? As for Compaq, I don't see them straying into the central office (Cascade part of Ascend). I see them staying closer to the enterprise, which they understand. Therefore at today's prices, wouldn't Cabletron (with Spectrum Enterprise/Network Management) seem more attractive than Ascend? Where does Newbridge fit into this equation, if any? They've made an acquisition UB Networks that hasn't been all that rosy. Looking at the networkers right now reminds me of what has been happening in the defense industry the last 10 years in terms of consolidation. There may not be enough interoperability to support dozens of companies. If customers are buying end-to-end, then there only needs to be two or three major players. Would appreciate your thoughts, Clare