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

To: Bill Edwards who wrote (26034)	12/5/1997 1:07:00 AM
From: satish kamat	Respond to of 61433

< insiders can't sell or buy shares in their own company when they are in merger talks> That's true only in the case of a friendly merger. If insiders want a higher price, then they start selling (buying before merger will get SEC all over the insiders) to send a signal to the suitor. In the case of ASND, LU or NT or CPQ may have started buying in blocks ( see Gary Korn's posts) at the low pirces between 22 and 30. This could have resulted in a hostile merger at about 35 because of the low price of ASND during this time. So the insiders were forced to sell even at lower prices throughout the window, to ensure that it further delays any attempts before the company gets to decide if they are going to make the number for the quarter. If you notice, Ashby is now comfortable with $1.45 for 1998 EPS compared to $1.17 at AEW conference few weeks earlier. Well 97 - 1.05 and 98 - 1.45 leads to ~38% growth rate. Message being send to the suitors: fair price is = 35x1.45 ~ $52 but let us start the bidding at $40. Remember the new CFO was brought to get the best merger price. What a web we weave, when we first practice ...