Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: TH who wrote (7284)	1/12/1999 11:47:00 PM
From: gerard mangiardi	Read Replies (1) \| Respond to of 90042

40 is my near term target on amd. Beginning to feel comfortable with my cych calls.

To: TH who wrote (7284)	1/12/1999 11:51:00 PM
From: Tim Luke	Respond to of 90042

Talk : Communications : Ascend Communications (ASND) \| Previous \| Next \| Respond \| Earnings \| To: +Hisham A. Mageed (58892 ) From: +Hisham A. Mageed Tuesday, Jan 12 1999 11:26PM ET Reply # of 58896 <<As part of the deal, Ascend stockholders will receive 0.825 share of Lucent for each of their shares. Based on Lucent's closing price Tuesday of $107.875, that would value the offer at about $89 a share, or a premium of 19 percent.>> -- NY Times

To: TH who wrote (7284)	1/12/1999 11:57:00 PM
From: Tim Luke	Read Replies (3) \| Respond to of 90042

done deal gals and guys....CONGRADS! and thanks for having faith and trust in me. . . . . Tuesday January 12, 11:32 pm Eastern Time Lucent to buy Ascend for up to $22 bln - sources (recasts, adds details of expected deal) NEW YORK, Jan 12 (Reuters) - Lucent Technologies Inc. (NYSE:LU - news), the world's largest telecommunications equipment maker, will announce on Wednesday the acquisition of Ascend Communications (Nasdaq:ASND - news), the fourth largest maker of computer networking equipment, in a deal valued between $19 billion and $22 billion in cash and stock, sources familiar with the situation said. Lucent and Ascend declined to comment. The exact terms of the deal could not be determined. A source close to Ascend said a formal announcement would be made at about 0530 EST (1030 GMT) on Wednesday morning. The deal would be the largest merger yet as the markets for voice and data networks continue to blur. While Lucent, which has traditionally provided voice products for telecommunications companies, has made some small acquisitions to enter the data networking market, an acquisition of Ascend would put it in a position to challenge networking leader Cisco Systems Inc. (Nasdaq:CSCO - news), Ascend's chief rival. Through the deal Lucent will gain access to Ascend's sophisticated data networking technology, while Lucent's greater financial resources and large sales force will put more muscle behind Ascend's products, analysts said. Lucent and Ascend, long rumored as merger partners, have been in talks for months, industry sources said. Discussions intensified in recent weeks as Lucent's stock strengthened, which gave Lucent 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. On Tuesday, shares of Lucent fell $5.06 to $107.88 in heavy New York Stock Exchange composite trade, adding to losses Monday after investors feared a potential Ascend acquisition might dilute Lucent's earnings, analysts said. Shares of Ascend fell $1.75 to $74.94 on Nasdaq, easing slightly after jumping more than $5 on Monday. An acquisition of Ascend would follow Lucent's announcement on Monday that it agreed to buy closely held Kenan Systems Corp., a billing software company, for $1.4 billion. Lucent has made a small series of acquisitions since it was spun off from AT&T Corp. (NYSE:T - news) in 1996, but it has been widely expected to make a massive acquisition since October, when it was freed from a 2-year restriction that prevented it from pursuing acquisitions using so-called pooling-of-interest accounting. Acquisitions made using pooling-of-interest accounting allow companies to avoid certain charges that would hurt profits over a long period. ''This is a strong move for Lucent, they need to build their product portfolio and attack the data market. Ascend needed to align itself with one of the major deep pocket players,'' said one industry analyst who declined to be named. Even with an acquisition of Ascend, Lucent will still have areas of weakness in serving international markets and providing networking equipment to large corporations, analysts said.