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

To: Dennis R. Duke who wrote (51320)	8/3/1998 8:43:00 AM
From: Narotham Reddy	Respond to of 61433

Dow News - ASND to Acquire Stratus Computer Dow Jones Newswires -- August 3, 1998 Ascend To Acquire Stratus Computer In $822M Stk Swap Dow Jones Newswires ALAMEDA, Calif. -- Ascend Communications Inc. (ASND) confirmed it definitively agreed to acquire Stratus Computer Inc. (SRA) in a stock swap transaction valued at $822 million. Each Stratus share will be exchanged for 0.75 of a share of Ascend, giving the transaction a value of $33.35 a share based on Ascend's July 31 closing price of $44 15/32, which was down 7 1/32, or 13.7%. Stratus' stock closed July 31 up 7/8, at $28 7/8. Ascend expects the acquisition to add to its 1999 earnings, resulting in income of $1.70 a share. A First Call consensus of 26 analysts predicted Ascend would earn $1.60 a share in 1999. The company reported operating income of $211.2 million, or $1.06 a share, on sales of $1.2 billion in the year ended Dec. 31, 1997. Ascend plans to set up Stratus' non-telecommunications businesses as sepearate units and divest them by the end of 1998.