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Technology Stocks : Westell WSTL -- Ignore unavailable to you. Want to Upgrade?

To: Eric Goethals who wrote (11706)	6/22/1998 11:48:00 AM
From: Zephod	Respond to of 21342

>>Ericsson is looking to acquire a few networking companies about the size of Westell. Eric; I noticed this as well, I'm surprised the market hasn't picked up on it. >>People are pointing in Pairgains direction even though their marketcap is 5x larger than what ERICY has indicated<< I thought the Wall Street Journal article was pretty clear on the size of the co's ERICY is looking at. "We're in negotiations with three companies, each worth several hundred million dollars." There was also a comment in there about overpaying for co's, an indirect reference to the 35% premium Nortel paid for Bay, and the fact the price has to be right. Pairgains market cap is over a billion Westell's around 315 million.

To: Eric Goethals who wrote (11706)	6/29/1998 10:27:00 AM
From: Zephod	Read Replies (3) \| Respond to of 21342

>>Right now Ericsson is looking to acquire a few networking companies about the size of Westell Eric; I'm starting to think Westell will be acquired. I also think the most likely suitor is Lucent, but I don't think we'll see it till Oct when Lucent can use pooling of assets accounting. If Westell were to be sold for cash the trust would lose a fortune to taxes, I think it would have to be a stock deal. Ericsson & Westell were the other finalists in the bidding for the JPC contract. Think of the implications for Lucent if Ericsson were to buy Westell. I think Lucent might want to buy Westell just to keep Westell's knowledge of the SLC DLC's, 5ESS etc in house. Just for the sake of argument, to prove the point, imagine what would happen if Alcatel were to buy Westell, Alcatel would have solutions for the Litespan, Lucents SLC and maybe 5ESS. Can Lucent afford to take that risk?