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

To: Joseph Colombo who wrote (51389)8/3/1998 12:14:00 PM
From: sam  Read Replies (2) | Respond to of 61433
 
Why wouldn't LU love the deal? They get two companies for LESS than the price of one.



To: Joseph Colombo who wrote (51389)8/3/1998 12:19:00 PM
From: Jan Crawley  Read Replies (2) | Respond to of 61433
 
Joe,

My opinion is that the Lu/Asnd merger premium is a flexible and interesting element for Asnd before Oct 98. Right now is is largely diminishing, but it will inch back slowly or gap up fast...

The possibility of the Lu/asnd is there and is tempting, the players just cannot ignore it.

Jan



To: Joseph Colombo who wrote (51389)8/3/1998 12:53:00 PM
From: Robohogs  Respond to of 61433
 
This deal is too tiny to matter to LU (and even ASND). Let's look at the deal.

We get:

over $500 million of cash post divestitures ($250-300 now plus another $250 or so from divestitures)

Telecom biz expanding our capabilities (VoIP)

We give:

$800 million of stock which used to be worth a billion

The upshot is that we will end up spending $300-400 million which represents less than 4% of our market cap. For LU at $100 billion, we're talking rounding error.


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