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

To: Edwin who wrote (50288)	7/22/1998 9:35:00 PM
From: Kent Rattey	Read Replies (1) \| Respond to of 61433

From tonights MSN chat: Host JimJubak says: I'm still holding asnd--I wouldn't sell while the Lucent acquisition rumors are around. Kent

To: Edwin who wrote (50288)	7/22/1998 9:36:00 PM
From: gbh	Read Replies (1) \| Respond to of 61433

Ed, it seems almost impossible that CSCO would acquire ASND. Total product overlap. It just won't happen. I'm not sure if ASND can make it on their own over the long term, say 3-5 years. I think ERICY would be a good fit, but I'm not sure of their desire to make such a big acquisition. I think an awesome combination would be TLAB/CIEN/ASND. There is virtually no product overlap, and this combo would be a megaforce in the carrier space. Revenues would initially be $3-4B with net margins of 20%. This is a combo that could truly give CSCO, LU, and NT a run for their money in the carrier market. The problem with this merger is that it is more a "merger of equals". TLAB is about a $15B company and ASND about $10B. Therefore, I would see this as having little takeover premium to ASND shareholders, as it would be too dilutive. But that's OK. No premium would be necessary. I feel the street would love this combo so much, that they would bid up both companies and hence create the takeover premium. Much like has happened with the TLAB/CIEN combo. Gary