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


To: swrdfsh who wrote (26352)12/5/1997 1:41:00 PM
From: sepku  Respond to of 61433
 
The following is in regards to how LU could purchase ASND without a stock swap and also briefly addresses Livingston's slight overlap

From TMF Ralegh, Motley Fool staff:
--------------------------------------------------------------------------------------------
Subject: Re: An early XMAS
Date: Fri, Dec 5, 1997 12:29 EST
From: TMF Ralegh
Message-id:

<< That was Richard McGinn, the CEO. He also has said that he's weary of larger buyouts because of the integration issues involved. Add to that that they just bought Livingston, I can't really blame people for skepticism when it comes to Lucent.>>

The company could always do a debt-financed deal and then issue shares later on, if it wanted to. In addition, Livingston's product line only matches the low-end of Ascen's product line and none of this takes into account the fact that Lucent has to re-sell certain WAN switching devices and re-sells Yurie ATM access and concentrator stuff. Ascend has the same thing, which would earn Lucent much higher margins being the OEM rather than the re-seller.
I don't think the Lucent speculation is that off-base.

Dale Wettlaufer
The Motley Fool