Lucent Technologies Inc yesterday dismissed as rumors and speculation press reports that the company is in talks to purchase data networking company Ascend Communications Inc. Lucent, the world’s largest phone-equipment manufacturer, is reported to be on the brink of closing a $16bn deal to purchase Ascend, the fourth biggest data networking hardware maker. Although both companies declined to comment when contacted by ComputerWire Monday, the Financial Times said an announcement could be expected as early as Wednesday. The fact that rumors of a possible merger between the two companies are appearing now makes sense. Lucent, which was spun off from AT&T in 1996, was barred from using the pooling of interests merger technique for two years. But with that ban now lifted, Lucent is free to enter talks. Investors speculating on Lucent’s future have consistently predicted that the Murry Hill, New Jersey-based vendor would favor a tie up with Ascend, since the acquisition would give it access to Ascend’s combined voice and data products that would help it compete with rival, Cisco Systems Inc. Ascend, through its acquisition of Stratus Computer Inc in August last year, has already made substantial inroads in the voice and data integration market (see separate story). Last May, Lucent bought Yurie Systems, which makes products similar to Ascend, for $1bn.
