Lucent, Ascend in $20 billion merger
By Ben Heskett
Staff Writer, CNET News.com
January 13, 1999, 12:40 p.m. PT
update Telecommunications equipment giant Lucent Technologies announced plans today to merge with high-end data provider Ascend Communications in a deal worth close to $20 billion, making it the largest such deal in the history of the data networking industry.
News of the deal caps a period of intense rumors concerning a merger of the two firms. It catapults Lucent into more direct competition with data kingpin Cisco Systems and allows the firm to offer a wider set of networking equipment to hard-charging Internet service providers and upstart telecommunications carriers.
Under terms of the pact, each share of Ascend stock will be converted to 0.825 shares of Lucent stock. Based on Lucent's closing price yesterday, the deal is worth $19.3 billion, more than doubling the purchase price paid by Northern Telecom for data player Bay Networks last year.
The deal has already been approved by each company's board of directors. It is expected to close during Lucent's third fiscal quarter, which ends June 30, 1999, and will be accounted for as a pooling of interests.
Lucent, Ascend in $20 billion merger
By Ben Heskett
Staff Writer, CNET News.com
January 13, 1999, 12:40 p.m. PT
update Telecommunications equipment giant Lucent Technologies announced plans today to merge with high-end data provider Ascend Communications in a deal worth close to $20 billion, making it the largest such deal in the history of the data networking industry.
News of the deal caps a period of intense rumors concerning a merger of the two firms. It catapults Lucent into more direct competition with data kingpin Cisco Systems and allows the firm to offer a wider set of networking equipment to hard-charging Internet service providers and upstart telecommunications carriers.
Under terms of the pact, each share of Ascend stock will be converted to 0.825 shares of Lucent stock. Based on Lucent's closing price yesterday, the deal is worth $19.3 billion, more than doubling the purchase price paid by Northern Telecom for data player Bay Networks last year.
The deal has already been approved by each company's board of directors. It is expected to close during Lucent's third fiscal quarter, which ends June 30, 1999, and will be accounted for as a pooling of interests.
Lucent, Ascend in $20 billion merger
By Ben Heskett
Staff Writer, CNET News.com
January 13, 1999, 12:40 p.m. PT
update Telecommunications equipment giant Lucent Technologies announced plans today to merge with high-end data provider Ascend Communications in a deal worth close to $20 billion, making it the largest such deal in the history of the data networking industry.
News of the deal caps a period of intense rumors concerning a merger of the two firms. It catapults Lucent into more direct competition with data kingpin Cisco Systems and allows the firm to offer a wider set of networking equipment to hard-charging Internet service providers and upstart telecommunications carriers.
Under terms of the pact, each share of Ascend stock will be converted to 0.825 shares of Lucent stock. Based on Lucent's closing price yesterday, the deal is worth $19.3 billion, more than doubling the purchase price paid by Northern Telecom for data player Bay Networks last year.
The deal has already been approved by each company's board of directors. It is expected to close during Lucent's third fiscal quarter, which ends June 30, 1999, and will be accounted for as a pooling of interests.
Lucent, Ascend in $20 billion merger
By Ben Heskett
Staff Writer, CNET News.com
January 13, 1999, 12:40 p.m. PT
update Telecommunications equipment giant Lucent Technologies announced plans today to merge with high-end data provider Ascend Communications in a deal worth close to $20 billion, making it the largest such deal in the history of the data networking industry.
News of the deal caps a period of intense rumors concerning a merger of the two firms. It catapults Lucent into more direct competition with data kingpin Cisco Systems and allows the firm to offer a wider set of networking equipment to hard-charging Internet service providers and upstart telecommunications carriers.
Under terms of the pact, each share of Ascend stock will be converted to 0.825 shares of Lucent stock. Based on Lucent's closing price yesterday, the deal is worth $19.3 billion, more than doubling the purchase price paid by Northern Telecom for data player Bay Networks last year.
The deal has already been approved by each company's board of directors. It is expected to close during Lucent's third fiscal quarter, which ends June 30, 1999, and will be accounted for as a pooling of interests.
Lucent, Ascend in $20 billion merger
By Ben Heskett
Staff Writer, CNET News.com
January 13, 1999, 12:40 p.m. PT
update Telecommunications equipment giant Lucent Technologies announced plans today to merge with high-end data provider Ascend Communications in a deal worth close to $20 billion, making it the largest such deal in the history of the data networking industry.
News of the deal caps a period of intense rumors concerning a merger of the two firms. It catapults Lucent into more direct competition with data kingpin Cisco Systems and allows the firm to offer a wider set of networking equipment to hard-charging Internet service providers and upstart telecommunications carriers.
Under terms of the pact, each share of Ascend stock will be converted to 0.825 shares of Lucent stock. Based on Lucent's closing price yesterday, the deal is worth $19.3 billion, more than doubling the purchase price paid by Northern Telecom for data player Bay Networks last year.
The deal has already been approved by each company's board of directors. It is expected to close during Lucent's third fiscal quarter, which ends June 30, 1999, and will be accounted for as a pooling of interests.
Lucent, Ascend in $20 billion merger
By Ben Heskett
Staff Writer, CNET News.com
January 13, 1999, 12:40 p.m. PT
update Telecommunications equipment giant Lucent Technologies announced plans today to merge with high-end data provider Ascend Communications in a deal worth close to $20 billion, making it the largest such deal in the history of the data networking industry.
News of the deal caps a period of intense rumors concerning a merger of the two firms. It catapults Lucent into more direct competition with data kingpin Cisco Systems and allows the firm to offer a wider set of networking equipment to hard-charging Internet service providers and upstart telecommunications carriers.
Under terms of the pact, each share of Ascend stock will be converted to 0.825 shares of Lucent stock. Based on Lucent's closing price yesterday, the deal is worth $19.3 billion, more than doubling the purchase price paid by Northern Telecom for data player Bay Networks last year.
The deal has already been approved by each company's board of directors. It is expected to close during Lucent's third fiscal quarter, which ends June 30, 1999, and will be accounted for as a pooling of interests.
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