Ascend Board to consider Lucent bid
Article Abstract:
Lucent Technologies Inc.'s takeover bid will be considered by the board of Ascend Communications Inc. in a deal that will be the biggest consolidation in the computer networking equipment industry if it goes through. Ascend's stock rose 7.3% to $76.6875 on the Nasdaq after a report in the Financial Times. Lucent's fell $2.3125 to $112.9375. Speculation that the two companies would merge has been going on for over a year. Lucent, spun off from At&T Corp. in 1996, is one of the oldest providers of telephone equipment to the phone companies. It needs Ascend's computer networking technology to stay ahead of Internet-driven changes in telecommunications in which voice, video and data communications will eventually all occur on the Internet and similiar networks. Lucent recently purchased, for $1.45 billion, another company, Kenan Systems Corp., in order to develop better billing software for its customers. Kenan's president, Kenan Sahin, will remain in his job and will become a vice-president of software technology at Lucent. Lucent's strategy is to become more important in the software sector of the data network industry.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1999
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AT&T weighs offering tied to purchase of TCI
Article Abstract:
AT&T is considering release in an initial public offering of tracking stock being created in connection with its acquisition of Tele-Communications Inc. The issue would be comprised of securities in the AT&T Wireless & Broadband unit. As much as 20% of shares in the unit will probably be issued to AT&T stockholders in an exchange offer. 10% may be offered to the general public in the IPO. It is uncertain whether the IPO will be comprised of some of the shares originally earmarked for AT&T shareholders or derived from AT&T's own holdings in the tracking stock. The intent of the issue is to raise money to be used by the new unit in further investments and acquisitions.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1999
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Comment about this article or add new information about this topic:
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