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To: The Ox who wrote (7539)	2/22/1999 7:39:00 PM
From: drsvelte	Respond to of 14427

re AG msnbc.com

To: The Ox who wrote (7539)	2/22/1999 9:48:00 PM
From: SJS	Respond to of 14427

Yes, Nice move on CREE, VTSS, and TXCC. Like that rumor, may go in search of some facts... Steve _______________________ By Heesun Wee NEW YORK (Dow Jones)--TranSwitch Corp. (TXCC) shares climbed as much as 22% Monday amid news the semiconductor company is poised to make an announcement, according to analysts. "There's going to be a release later on this afternoon," confirmed Mary Lombardo, a spokeswoman for TranSwitch, based in Shelton, Conn. Lombardo declined to offer further details. But Pacific Growth Equities Inc. analyst Sandy Harrison said the company has been contemplating some sort of acquisition - especially in light of TranSwitch's secondary offering of about 1.7 million shares roughly two weeks ago. Likely candidates include software companies such as those in the communications-chip business, Harrison added. Harrison also said many talented engineers recently have left networking companies to pursue startups. Those embryonic companies, in turn, are gaining the attention of companies looking to buy - possibly including TranSwitch, Harrison said. "I think there could be some anticipation that the acquisition would be accretive," Harrison added about the stock price increase. Investors also may be reacting to news earlier Monday that a Lucent Technologies Inc. (LU) unit bought Sybarus Technologies, Harrison said. Both TranSwitch and Sybarus - a privately held semiconductor design company in Ottawa, Ontario - are in the business of optical communications, Harrison said. Lucent's investment in optical communications seems to be rubbing off on TranSwitch stock, Harrison added. TranSwitch shares recently traded at 36 1/2, up 6 1/4, or 20.7%, on volume of 950,300. Average daily volume is about 315,000. The stock traded as high as 37 1/8 earlier Monday. Likelihood of an acquisition aside, Clark Westmont, an analyst at NationsBanc Montgomery Securities, partially attributes TranSwitch's stock rise Monday to investors taking advantage of a good buying window. "The stock has been oversold recently," Westmont said. But if TranSwitch makes an announcement, Westmont said he won't be surprised. During a secondary offering's registration period - as was recently TranSwitch's case - regulatory officials discourage the respective company from promoting itself through news releases and announcements, Westmont explained. With TranSwitch's secondary offering priced, however, the road is clear for the company's normal flow of releases and news - which has been lacking lately, Westmont said. Contributing to the guessing game, Robinson-Humphrey Co. analyst Greg Mesniaeff said he expects the company to make an announcement about design wins, or new business. Both Westmont and Pacific Growth's Harrison said they don't know the details of TranSwitch's announcement - scheduled for release after the market's close Monday. - Heesun Wee; 201-938-5392