Let's call the whole thing off: Tellabs drops acquisition of Ciena
Article Abstract:
Tellabs abandoned its plans to acquire rival telecommunications equipment manufacturer Ciena. A Jun 1998 announcement called for Tellabs to purchase Ciena in a stock swap valued at $7.3 billion. The proposed merger unraveled because of weakened financial outlooks, diminished sales and a sharp drop in both companies' share prices. A catalyst occurred earlier in Sep 1998, after Ciena lost out to Pirelli on an approximately $25 million sale to Digital Teleport. This forced Ciena to report 3rd qtr 1998 earnings of $2.1 million, or 2 cents a diluted share fully diluted. By comparison, a First Call survey of analysts had called for Ciena to earn 32 cents a share. Ciena also predicted lower 4th qtr 1998 and 1999 revenues and profit margins. Both companies expressed frustration with the announcement, while analysts doubted that Ciena would maintain its independence.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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Tellabs is said to be near new deal for Ciena
Article Abstract:
The acquisition of Ciena Corporation, which makes telecommunications equipment, by Tellabs Inc. has been renegotiated under new terms which would place the value of the deal at $4.1 billion to $4.7 billion. Industry analysts had claimed that Ciena, which reported third quarter profits were about half of what had been anticipated, was a high risk company. Ciena has been hurt by the delay of a $25 million order and a decision by AT&T not to place a $100 million order for fiber optic network technology from Ciena.
Comment:
Acquisition of Ciena Corp. has been renegotiated under new terms which would place the value of deal at $4.1 to $4.7 bil
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
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