Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Teddy who wrote (49884)	7/14/1998 4:44:00 PM
From: Kent Rattey	Read Replies (3) \| Respond to of 61433

Ascend Said To Have Shied Away From Acquiring Advanced Fibre Dow Jones Online News, Tuesday, July 14, 1998 at 16:00 NEW YORK -(Dow Jones)- A number of analysts backed away Tuesday from speculation that networking company Ascend Communications Inc. would acquire Advanced Fibre Communications Inc. Last month, analysts were saying that small and midsize makers of telecommunications equipment would have a tough time remaining independent in the wake of Alcatel-Alsthom SA's plans to acquire DSC Communications Corp., and Tellabs Inc.'s deal to buy Ciena Corp. The sector has been dominated by giants such as Lucent Technologies Inc., Canada's Northern Telecom Ltd. and Swedish firm Telefon AB L.M. Ericsson. Those deals prompted speculation as to who would be the next to sell itself. Ascend, PairGain Technologies Inc., ADC Telecommunications Inc. and Fore Systems Inc. were among those mentioned. But an Ascend options trader on Tuesday said nothing suggested that traders were preparing for the company to make an acquisition or sale. In response, Ascend's shares were down $3.25, or 6.1%, at $50.188 in late-afternoon trading. An Advanced Fibre spokeswoman said the company wasn't in talks with anyone. Ascend declined to comment. Joe Noel, a Hambrecht & Quist analyst who visited Advanced Fibre on Friday, heard the takeover rumors, but he doesn't believe the company is about to be acquired. He reiterated his "buy" rating on the stock Monday. Advanced Fibre develops telecommunications equipment that boosts the capacity of telephone networks. Noel said Advanced Fibre ultimately belongs in another company's product portfolio, but he believes management would resist a bid at current stock levels. Advanced Fibre's shares (AFCI) were up 62.5 cents at $24.75 in active dealings late Monday, but off sharply from over $40 on June 30, when the company warned that second-quarter earnings would be below estimates. Noel said he believed Advanced Fibre's management resisted the opportunity to sell the company when the stock was trading in the $40s. Copyright (c) 1998 Dow Jones & Company, Inc. All Rights Reserved.