Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: gerard mangiardi who wrote (33313)	2/4/1998 7:32:00 PM
From: Glenn D. Rudolph	Respond to of 61433

Pooling of interests considerations would only come up if LU were to do a stock deal. gerard, This is not correct. A pooling of interests affects the income tax consequences. Therefore, more tax has to be paid by LU if an aquisition is made prior to October 1, 1998. I do not anticipate Ascend to be in anquisition talks with anyone in the near future. Glenn

To: gerard mangiardi who wrote (33313)	2/5/1998 12:19:00 AM
From: Roadkill	Respond to of 61433

>>What would be interesting is if one of them made an offer, would the other start a bidding war?<< I'm not a securities lawyer, but I vaguely remember a little bit of this stuff from law school. When the Board of a publicly-traded company decides that the company is up for sale, the company/Board goes into what the lawyers call "Revlon Mode", referring to a famous Delaware case involving (you got it) Revlon. In any event, once the Board decides that the company will be sold, it has a fiduciary obligation to the shareholders to entertain other relevant offers. The Board does not necessarily need to take the highest offer, but it has an obligation to maximize shareholder value. All this is kind of a long way of saying: I have no doubt that a bidding war of sorts would break out if ASND began to seriously consider a buy-out offer. Would it drive the price through the roof? I doubt it, but it may be worth an extra $2-$5 bucks per share. MHO, of course. Matt