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

To: gbh who wrote (48841)6/17/1998 7:48:00 AM
From: Lockhart  Read Replies (2) | Respond to of 61433
 
A stock purchase is not taxable to stockholders if purchase is made with stock which is the likely scenario. The shares of the purchased company are converted to the purchasers stock at the agreed upon ratio. For instance the ASND purchase of CSCC. CSCC stockholders received .7 shares



To: gbh who wrote (48841)6/17/1998 8:51:00 AM
From: David Lawrence  Respond to of 61433
 
As other have said, it's not an issue of payment method - stock or cash. It's an issue of accounting treatment - pooling of interests of a purchase, thus determining how the goodwill and other intangibles is handled.

As an aside, you left out their largest acquisition - Octel. I believe (but could be wrong) that it was paid for with $1bil stock, but was treated as a purchase by necessity.


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