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

To: JHC44 who wrote (26073)	12/5/1997 7:14:00 AM
From: MR	Respond to of 61433

No

To: JHC44 who wrote (26073)	12/5/1997 7:17:00 AM
From: Gary Korn	Respond to of 61433

CPQ still makes more sense to me than LU: 1. CPQ rushed to file its 14-C for 2B more shares on 10/24. The extra CPQ shares will be authorized by 12/11. 2. At almost precisely the same time, insider selling at ASND and CPQ peaked (with a few subsequent stragglers in November). 3. CPQ's Alan Lutz on 11/15 identified RAS as a target market in which CPQ wants a dominant 25% share (that is the ASND/CSCC share). Lutz also listed ASND and CSCC as the players in that market (along with COMS). 4. ASND's Ashby basically denied LU as an "old rumor," which tends to limit the viability of LU as a buyer in my opinion. 5. Ashby did decline to comment on whether ASND had received unsolicited offers. So, it may well have received such an offer from BAY and perhaps NT, though at a price considerably lower than the 8 x sales it may be seeking. 6. ASND's Ashby said that it is not seeking suitors. Perhaps because a deal is done with, say, CPQ? 7. The grain of truth in the LU rumor may be that there is in an acquisition deal in the works (which caused call option activity to pick up), the deal is just not with LU. 8. Visitation of ASND by a CPQ "team" 2 weeks ago, if true, would be very significant. A due diligence team would precede any buyout. Gary Korn