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

To: Chuzzlewit who wrote (48822)	6/17/1998 12:29:00 AM
From: Jack Whitley	Respond to of 61433

<<Jonathan, perhaps you can explain your answer. It was my assumption that the only tax consequence would be to current holders of ASND who would be forced to treat a purchase by LU as a taxable event. Isn't it true that the only consequence to LU would be to amortize goodwill on their books for 30 years. Earnings would be impacted, but not cash flow. In other words, the impact on the business is illusory. The real impact will be on the stockholders of ASND.>> I would also like to add a question. Surely ASND will press for some kind of solid 'cap and collar' associated with a stock swap if LU makes a stock-based offer? I hope for Bay shareholders sake that Bay got one (ie more Nortel shares if the price drops below a certain threshold by closing) and it just wasn't reported. If they did not get one, I'm sure THAT takeover is going to turn extremely hostile, and Nortel may still wind up being an ASND suitor. jww