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

To: Peter Y. Hsing who wrote (51538)	8/4/1998 10:52:00 AM
From: Robohogs	Respond to of 61433

ASND/SRA is not a pooling - there will be $200 million og goodwill costing $20 million per year over 10 years. ASND cannot pool with SRA due to divestitures of SRA businesses. ASND can therefore maybe use some of cash from SRA and divestitures to buy back stock but only upto a limit of 10% of oustanding shares if it wants to pool with LU/CSCO/Ericssen (sp?). Last year's CSCC merger could also restrict any buybacks - the only reason I mention a buback is the large amount of new cash from the SRA deal.

To: Peter Y. Hsing who wrote (51538)	8/4/1998 11:13:00 AM
From: Peppe	Respond to of 61433

Peter, Interesting theory, but a little far-fetched, I believe. LU asking ASND to buy companies on their behalf ? Way too risky for LU if this was true. How about another theory ? What if LU was happy with their Livingston and Yurie acquisitions and theyy decide to go on their own ? What if ASND new this and is building an arsenal to compete with LU and NT ? The Stratus buy definately hurts LU and NT more than a CSCO. IMHO, LU wouldn't need SRA technology. It may be an indication that the LU deal is off for good. Cheers, Peppe