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

To: Pat Hughes who wrote (58920)	1/13/1999 1:25:00 AM
From: Chuzzlewit	Respond to of 61433

Before everybody gets carried away with euphoria, let's do some arithmetic on this deal. Assuming that the deal is nominally $20 BB, that implies a share price of $92.21 (based on 216.9MM shares o/s), and a conversion ratio of 0.855 shares of LU for each share of ASND. But as everybody is aware, because of the stock swap nature of the deal you should expect less than the nominal amount. The swap would add approximately 185.4MM shares of LU after conversion (0.855 * 216.9MM), for a total of 1,505.4 MM shares. The total capitalization would be $158.649BB based on todays close, and based on the expected total number of shares the price of LU will fall to around 105.387. Therefore, the equilibrium price of ASND will be $90.105 per share. TTFN, CTC