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Technology Stocks : BAY Ntwks (under House) -- Ignore unavailable to you. Want to Upgrade?

To: Pravin Kamdar who wrote (5731)	5/11/1998 6:03:00 PM
From: Daniel Liberty	Respond to of 6980

Pravin, You are probably right about the price Lucent could pay in the fall. I understand they cannot do a stockswap until October 01, 1998. Apparently, this method has significant tax savings associated with it. I've held Bay for 18 months now and watched it wax and wane. I'm about even but keep hearing about their great technology and the fact that Mr. House is a great manager. I hope something happens soon. Ascend has looked very good lately. Dan

To: Pravin Kamdar who wrote (5731)	5/11/1998 9:10:00 PM
From: John Messbauer	Read Replies (2) \| Respond to of 6980

Pravin, any feel for the offer price per share if LU should make a move on BAY? Regards, John

To: Pravin Kamdar who wrote (5731)	5/12/1998 12:52:00 PM
From: Ishmael	Read Replies (1) \| Respond to of 6980

IMHO I agree with you Pravin. I think Ascend is a much better choice. It gets Lucent into the service provider space with frame relay and mid-sized ATM. Right now Lucent has next to nothing in those spaces except for the MX1000(Carrier Edge)switch which may or may not be shipping. (Note the Globeview is a Carrier core switch) The Gigabit Ethernet overlap bothers me too. Why would LU buy Prominet only to turn around and buy BAY which comes with Accelar. Other than routing, there's really no technology that LU could get from BAY that it couldn't get by a series of smaller acquisitions. In the case of ASND though, you've got bigger deals, longer sales cycles and reputation and relationships mean more. So you've got ASND with a fairly proven set of products with a good installed base and a decent future ahead. This would allow LU to hit the ground running. If it turns out to be BAY, LU just hits the ground. That is to say, BAY is a fixer upper and I don't think that's the case with ASND. Of course that means that LU would pay a heavy premium for ASND, but coming from a company that paid a Billion in cash for an edge mux vendor, I'd expect nothing less. As a BAY shareholder I hope LU buys us, but as a LU shareholder, I hope it's ASND. Enjoy