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


To: djane who wrote (51438)8/3/1998 2:56:00 PM
From: hitesh puri  Read Replies (1) | Respond to of 61433
 
Yes Duane, unfortunately the market has become a game with high stakes and its just do anything to win so that the inflows of cash come to your fund and you retain your job with fat bonuses. As long as you beat the indices which are comprised of the same stocks you buy you are fine.
Jeez, fundamentals and valuations mean very little nowadays.

-hitesh



To: djane who wrote (51438)8/3/1998 3:10:00 PM
From: mrclinton  Respond to of 61433
 
Does this really happen ? :-)



To: djane who wrote (51438)8/3/1998 3:11:00 PM
From: djane  Read Replies (2) | Respond to of 61433
 
News.com. Ascend buys Stratus Computer

news.com

By Sandeep Junnarkar
Staff Writer, CNET NEWS.COM
August 3, 1998, 11:05 a.m. PT

update In a bid to move closer toward an era of
multimedia telecommunications over the Internet,
networking equipment maker Ascend
Communications announced today that it will
acquire Stratus Computer for about $822 million in
stock.

Ascend will acquire all
of the outstanding shares
of Stratus in a tax-free
stock-for-stock
exchange. Under the
terms of the agreement,
each share of Stratus will
be exchanged for 0.75
shares of Ascend, based
on Ascend's closing
price on July 31.

Ascend said it would divest itself of Stratus'
non-telecommunications' business before the end of
1998.

"I still don't think they needed the whole company,"
said Steven Frenkel, an analyst at Paragon Capital.
"Although they are going to sell off the other
divisions, how much are they going to get for them,
and who is going to buy them?"

Most analysts agreed that the task of finding buyers
may be more difficult than the company expects.
There is speculation that a buyer or several buyers
already have been found, which Ascend declined to
confirm.

"I don't think they are going to get much for those
divisions," Frenkel added. "Most likely, they are
going to have to eat the losses"

Shares of Ascend barely reacted to the news of the
acquisition, while shares of Stratus jumped.

Ascend's stock rose just over 2 percent and was
trading at 45.44. The stock closed Friday at 44.47,
having traded as high as 55.75 and as low as 22
during the past 52 weeks.

Stratus Computer shares rose nearly 12 percent, to
32.25. The company's stock has traded as high as
60.75 and as low as 21.44 during the past 52
weeks.

Ascend makes communication products used by
both Internet Service Providers and telephone
carriers. Its products can carry both voice and data
over a network, and Ascend hopes to fuse the
technologies to offer voice and data across a single
pipe in the future.

Stratus makes high-end computers designed to run
24 hours a day and to perform demanding tasks for
telephone carriers and other industrial uses. Stratus
also makes computers that run Signaling System 7
software, specially designed to intercept and
reroute data transmissions.

"The rapid growth of the Internet has increased
data traffic and strained the Public Switched
Telephone Network, forcing carriers to constantly
expand their telecom backbones," Ascend
president and CEO Mory Ejabat said in a
statement announcing the acquisition. "Our
products, combined with Stratus' SS7 switches,
OSS software, and fault-tolerant platform, allow
network service providers cost-effective, reliable,
and transparent means to relieve congestion while
reducing operating costs."

Ejabat will remain Ascend's president and CEO,
while Bruce Sachs, Stratus's president and CEO,
will become the company's executive vice president
and general manager of its carrier signaling and
management unit.

Ascend will take a one-time charge of
approximately $400 million in the fourth quarter
1998 related to the merger. The charge will include
the costs associated with Stratus' previously
announced restructuring, in which it laid off 350
employees.

The two companies expect an additional 150
positions to be eliminated as a result of their
combination.

Ascend competitor and networking giant Cisco is
said to be moving to acquire Summa Four to gain
position similar to that of the newly combined
company. In addition, Canada's Northern Telecom
agreed in June to buy Bay Networks.

Ascend's acquistion probably will not stop
speculation that the company is a takeover target
itself. The most-often mentioned suitors are Lucent
Technologies and Ericsson.

However some analysts argued that Ascend's stock
is highly overvalued.

"To my mind, the only issue is does it make Ascend
more, less, or just as attractive to Lucent," said
Bert Hochfeld, an analyst at the investment banking
firm of Josephthal & Company. "Frankly, from
Lucent's point of view, it might be nice to have
another product that you are selling to a telco.

He added: "The only reason to own this stock was
because of an interest in seeing whether [Ascend]
will get sold to Lucent, and I don't think this deal
will prevent them from being sold." [The only reason? Want to clarify?]

Related news stories
 Ascend descends on rumor July 31, 1998
 Ascend beats estimates July 15, 1998
 Nortel-Bay deal a sea change June 15, 1998
 Networking firms' boom time over June 11, 1998
 Ascend to replace DEC on S&P 500 June 9, 1998
 Bay, Ascend vie in VPN market May 4, 1998

Copyright c 1995-98 CNET, Inc. All rights reserved. Privacy policy.




To: djane who wrote (51438)8/3/1998 3:19:00 PM
From: djane  Read Replies (2) | Respond to of 61433
 
U.S. Companies Land In French Silicon Valley [ASND working with DT/FT/BT and ISPs]

techweb.com

(07/31/98; 1:44 p.m. ET)
By Alan Tillier, Contributor, TechWeb

A host of American technology companies, drawn by
the ability to hire top multilingual development engineers
more cheaply than in California and the development of
the Internet in Europe, have arrived in France's answer
to Silicon Valley.

There are now around 50 American high-tech
companies, employing 2,500 people, in Sophia
Antipolis, near Nice in southern France. The area is
spread over 6,000 acres of pine-studded landscaped
parkland, surrounded by Europe's most expensive real
estate.

Aside from sales and servicing across Europe, the
companies are increasingly engaged in the development
of systems. Cadence, the Californian electronic
design-automation company, now has 20 engineers
working in the park on software for chip design,
according to Jacques-Olivier Piednoir, local engineering
director at Cadence.

"It is becoming increasingly difficult to hire and retain
people in Silicon Valley. There's salary inflation in
California, but here a top man costs 60 percent of his
Californian counterpart, and that includes highFrench
social security and other charges," said Piednoir.

The latest arrival is Packet Engines of Spokane, Wash.,
a provider of gigabit networking solutions, which has
established a new European headquarters at Sophia
Antipolis. "We set up because of the huge interest from
companies in Europe," said Bernard Daines, Packet
Engines' president and CEO.

The park has now become a "hotbed of Internet
companies," according to Jon Axon, Packet Engines'
new European manager, and formerly of Bay
Networks, another U.S. company on the park.

Cadence's big European customers, such as Philips,
Siemens, Matra, British Aerospace, and SGS
Thomson, want support engineers close to them,
according to Piednor. "We can fly from here quickly to
just about anywhere in Europe," he said. U.S.
companies, such as VLSI, Mentor, Texas Instruments,
and Compaq have found a pool of skilled people in the
area. "It's a good place to find talent," he said.

Sophia Antipolis started as a science and arts park.
Pablo Picasso, who lived nearby, took a spade and
broke the first ground. Since then, it has become a
high-tech center rivaled in Europe only by Cambridge,
England's Silicon Fen technology area, in the view of
many experts.

Ascend, the fast-growing $1 billion Alameda, Calif.,
provider of integrated remote networking solutions,
now has 50 staff members on the park working with
European carriers such as France Telecom, Deutsche
Telekom, and British Telecommunications, as well as
with ISPs. It has moved staff to Sophia Antipolis from
Cascade, the Boston core switching company it
acquired last year.

"From here, we provide technical support, training, and
consulting in Europe, Africa, and the Middle East," said
Edgardo de Fonseca, Ascend's director of client
services. "This place is booming because of firms
integrating into Internet," he said.


U.S. companies are staging their first microelectronics
forum, devoted largely to electronic design automation,
at Sophia Antipolis Oct. 29 to show their products to
European companies and underscore their major
presence in the South of France.