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Technology Stocks : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: pat mudge who wrote (9000)	1/12/1999 3:05:00 PM
From: Clay Takaya	Read Replies (1) \| Respond to of 18016

Pat: You are stubborn!!! But so what??? Here's another engagement announcement from Reuters. A marriage announcement would favor NN as well although there wouldn't be LU buyout. Lucent, Ascend Boards Mull Possible Deal By Jessica Hall NEW YORK (Reuters) - The boards of Lucent Technologies Inc. (NYSE:LU - news) and Ascend Communications Inc. (Nasdaq:ASND - news) were meeting Tuesday to consider Lucent's possible acquisition of Ascend in a deal valued at least $17.4 billion and possibly more than $20 billion, sources close to both companies said. Lucent, the world's largest maker of telecommunications equipment, and Ascend, the fourth-biggest maker of computer networking gear, declined to comment. A deal could be announced as early as Wednesday, but the timing could change, depending on the outcome of Tuesday's meetings, industry sources said. ''As of right now, it's still on track for Wednesday,'' said a Lucent executive who declined to be named. Under the scenario currently being considered, Lucent would acquire Ascend for at least $80 a share or $17.4 billion, and possibly even more than $20 billion, a source close to Ascend said. If the long-rumored purchase of Ascend comes to pass, it would help Lucent tackle the blending markets of traditional voice networks and high-speed data networks, analysts said. An acquisition of Ascend would follow Lucent's announcement Monday that it agreed to buy closely held Kenan Systems Corp., a billing software company, for $1.4 billion. During a conference call Monday to discuss the Kenan deal, Lucent Chief Operating Officer Dan Stanzione declined to discuss a possible Ascend purchase, but said the data networking market is ''one of the hottest growing segments and one that we're interested in.'' Lucent and Ascend have been working closely together for months and this week were still reviewing the financial implications of a possible deal, said industry sources who declined to be identified. The sources said discussions intensified as Lucent's stock strengthened in recent weeks, since Lucent had an increasingly powerful currency with which to pursue an Ascend acquisition. Shares of Lucent recovered from $57 in October, during broad weakness in the stock market, to a record high of $119.94 last week. Tuesday, Shares of Lucent fell $3.19 to $109.75 in heavy trading on the New York Stock Exchange, adding to losses Monday after investors feared a potential Ascend acquisition might dilute Lucent's earnings, analysts said. Shares of Ascend fell 37.5 cents to $76.31 on Nasdaq, easing slightly after jumping more than $5 Monday. Lucent, spun off from AT&T Corp. (NYSE:T - news) in 1996, has been widely expected to make a large acquisition since October, when it was freed from a two-year restriction that prevented it from pursuing acquisitions using so-called pooling accounting. Lucent plans to use pooling-of-interest accounting, which would allow it to avoid certain charges that would hurt earnings over a long period, for the Kenan acquisition. The Kenan deal does not prevent Lucent from using pooling in future deals. While Lucent has made some small acquisitions in the data networking market, buying Ascend would put it into a position to challenge networking leader Cisco Systems Inc. (Nasdaq:CSCO - news), Ascend's chief rival, analysts said. ''With Ascend, they are buying an installed base -- a track record with someone proven in the data networking market,'' said Maribel Lopez, a networking analyst with technology market research firm Forrester Research. ''While Ascend has the technology, Lucent has the breadth and marketing experience and the cash to bring all of this technology global,'' the Lucent executive said. Even with an acquisition of Ascend, Lucent would still have areas of weakness, such as the international markets and providing networking equipment to large corporations, said Jay Pultz, a research director for The Gartner Group, a market research firm.

To: pat mudge who wrote (9000)	1/12/1999 8:48:00 PM
From: Benny Baga	Read Replies (1) \| Respond to of 18016

Hey Pat! How are you doing? I found this story and thought I would pay you a visit. nt.excite.com and just FYI on Lucent's announcement on Monday it agreed to buy privately-held Kenan Systems Corp, a billing* software company, for $1.4 billion.*....Wheat First published a report this morning using the Lucent purchase of Kenan for valuation of CheckFree. Kenan sold for 8.5 times revenue...which would put CF at around $38. Best Wishes, Benny

To: pat mudge who wrote (9000)	1/12/1999 9:38:00 PM
From: Ian@SI	Read Replies (2) \| Respond to of 18016

Pat, At least somebody loves us... ;-) ... Meanwhile, some managers are shifting into other sectors where valuations look more reasonable. Dresdner is already overweighted in data communications, with Cisco Systems, Newbridge Networks and Ascend Communications. "Regardless of what happens in 1999, Internet and data growth will continue unabated, and the infrastructure needs to grow," Chen observes. ... Subscribers may read the whole story at: interactive.wsj.com