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Technology Stocks : Trimble Navigation -- Ignore unavailable to you. Want to Upgrade?

To: Robert A. Sutherland who wrote (1907)	12/3/1997 9:41:00 PM
From: SKIP PAUL	Read Replies (2) \| Respond to of 3506

Ashtech Shareholders received $25 million in cash plus 34% of Magellan for 66% of Ashtech. If Magellan is valued at one time sales (which is generous for a company with very low gross margins) Ashtech was valued at $58 million for this transaction. It seems like a desperation deal for Ashtech which I think was badly wounded in Q3 by a series of events. Such as Trimble's 4800 introduction, Topcon's defection, and Sokkia's imminent departure. Ashtech would have had to spend millions of $ to develop a competitive product to the 4800. In my estimation Ashtech could not have sustained itself going alone. In retrospect it seems that several strategic decisions made by Boesenberg have backfired. Is there any synergy between Ashtech and Magellan? It remains to be seen but none is apparent to me. The merged entity desperately needs to raise capital its still not clear how they will do that?