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.

Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (19130)	8/1/1998 2:20:00 PM
From: thebeach	Respond to of 50167

Good afternoon Ike,at first the inclination is to think this and after closer look we will see this a perfect fit.Lu will come even faster now given Asnd has snared a real gem for next to nothing.Give this time and we will reap the rewards.The usual Wall street panic has given us a great chance to buy .

To: IQBAL LATIF who wrote (19130)	8/1/1998 4:15:00 PM
From: James Strauss	Respond to of 50167

ASND... IQBAL: I tend to agree that ASND is offering up a poison pill... Now we'll see how much LU really wants ASND... Jim

To: IQBAL LATIF who wrote (19130)	8/2/1998 9:19:00 AM
From: Raj	Respond to of 50167

Iqbal, The market has obviously done a perfunctory analysis of the ASND/SRA merger rumor. My sense is that the price movements have largely been driven by arbitrageurs locking in a risk-adjusted spread. As for the synergies between the two companies, it is not obvious. However, if you scratch the surface, it seems almost brilliant. SRA builds fault-tolerant computers that are well entrenched in today's telecom network as Intelligent Network elements. Telecom networks operate in 2 planes: the payload path and the signalling path. SRA computers hold the logic that control the payload traffic. With the data and voice networks converging...and in order to efficiently bridge the two, you need to offer ubiquitous signalling. SRA is leading the convergence from a signalling perspective...atleast thats what they claim. Plus ASND will play on CISCO's lack of proven fault tolerant capability....a card that Lucent has been playing strongly. I personally think that ASND has increased its net worth and would now be very attractive to LU. ASND's market cap is 10% of LU and SRA's market cap is 10% of ASND. So it makes little difference to LU. Anyway, if the rumor is true and if the merger goes through, IMO SRA should be restructured to sell off stuff that ASND does not need. BTW the CEO of SRA was CEO of Xylogics that got acquired by BAY. IMHO.