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


To: Robohogs who wrote (54201)9/15/1998 9:11:00 PM
From: gbh  Read Replies (2) | Respond to of 61433
 
JR, LU's '98 projected earnings are 1.70 giving a PE of 43.8 (current price of 74 1/2). ASND projected to earn 1.19 in '98. So any price paid for ASND that yields an ASND PE greater than 43.8 in '98 would dilute '98 earnings, of the merged company. 43.8 x 1.19 = 52.5

It's true that by the end of '99 a $70 dollar purchase price "might" not be dilutive, but it would definitely be "immediately" dilutive.

gary