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

To: The Phoenix who wrote (52547)	8/21/1998 5:24:00 PM
From: Clay Takaya	Read Replies (1) \| Respond to of 61433

I tend to agree with your assessment of the takeover premium at this stage of the game as I had stated it was $ 10-15 back when the stock was in the 50's. This would equate to $5 dollars now. I think there is an additional point of risk, however, you may want to think about: If LU decides not to buy ASND in OCT, then it will have made a statement about ASND's technological lead and how it views its chances of catching up in the area of ATM switching. None of us can know the secret stuff that Bell Labs is working on right now (or ASND for that matter). By not buying ASND, LU will be saying that it thinks it can either develop ASND's technology on its own, or maybe buy someone else cheaper. With the above scenario in mind and depending on the market conditions, the downside risks may be greater than is readily apparent.