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

To: Jan Crawley who wrote (48803)	6/16/1998 8:59:00 PM
From: Gary Wisdom	Read Replies (3) \| Respond to of 61433

Lucent matters, but doesn't. IMHO, Lucent is the catalyst that will drive Ascend to be taken over. But Lucent won't get Ascend. Ever think that EVERYONE knows that Lucent can't buy Ascend until October? So, wouldn't you think that some smart acquirer out there will bid for Ascend before October 1? Most likely, Ascend will reject the first offer. But once this offer gets in the press, the stock will skyrocket. The road may be bumpy, but it's headed north.

To: Jan Crawley who wrote (48803)	6/16/1998 10:18:00 PM
From: gbh	Read Replies (2) \| Respond to of 61433

Hi Jan, LU cannot buy ASND for cash unless they get an awful big loan. LU has less than $1B in cash as of their last quarterly report, 3/31/98. Gary

To: Jan Crawley who wrote (48803)	6/17/1998 6:00:00 AM
From: Andreas Helke	Read Replies (1) \| Respond to of 61433

Using cash or stock is independent from the accounting treatment. Lucent has so far made acquisitions for cash as well as for shares. The bad thing of purchase accounting is that you can't write off the acquisition cost in one big lump that everyone will disregard. Instead you have to subtract the costs from earnings over many years. This will reduce the reported earnings and therefore may have a depressing effect on the stock price if the acquisition is big. Andreas