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

To: hitesh puri who wrote (58509)	1/8/1999 11:40:00 AM
From: Souze	Respond to of 61433

I'd be interested in the answer to your question re the possible impact of LU Q1 earnings increase on ASND merger deal. FWIW, I think an LU buyout of ASND is imminent, because IMO LU is finally willing to pay ASND's price, which I guess to be 1 for 1. 'Just wish the merger would be announced next week, to help my options; I don't honestly think it will be, but am still holding those options, just in case; the potential large upside compensates for the downside risk.

To: hitesh puri who wrote (58509)	1/8/1999 1:38:00 PM
From: Souze	Read Replies (1) \| Respond to of 61433

Hitesh, I'll take a stab at answering your question, even though financials aren't my area. Maybe it will prompt someone else to jump in with input. As i said, I'm interested in the answer too. I don't think the one time increase will affect the chances of LU buying out ASND. But, to the extent that the accounting change affects future earnings, I think that it will. I think the buyout price will be evaluated by ratioing the two companies' projected earnings over some fixed period and then adding a buyout premium. So, assuming that to be the case, the higher LU's projected earnings, the less they would have to pay for ASND. When Ascend bought Cascade, the deal included a clause on both sides that stock price changes would not affect the deal. If Ascend management felt that way when buying, I expect they would look at things that way when being bought. It is for that reason that I don't think LU's stock price has much relevance. But their earnings, yes, I think that does. Anyone else?

To: hitesh puri who wrote (58509)	1/11/1999 12:26:00 AM
From: yojim	Respond to of 61433

Good cheer to all you folks that hung in there this past year. It was a great thread that I spent some time on in 1998. I wish you all well and I hope you made zillions. IMHO LU will grab another networker. Long LU. Go LU!!!!! jim

To: hitesh puri who wrote (58509)	1/11/1999 8:19:00 AM
From: Souze	Read Replies (1) \| Respond to of 61433

Also does Lucents additional 1.3 billion is earnings adjustment in Q1 make it easier to absorb Ascend if a deal is struck Q1 ? Hitesh, After mulling this question over, I'm changing my mind<ggg>. Seriously, though, Lucent could argue to itself and its shareholders that using all of that 1.3 billion to sweeten the Ascend offer is not really dilutive, because that 1.3 billion had not been anticipated and was not reflected in '99 EPS estimates. Anyway, I hope that's the case. Cheers.