Tellabs to announce deal to buy Ciena; scramble for data networks prompts stock accord valued at $7.5 billion
Article Abstract:
Tellabs is expected to announce the acquisition of fiber-optic communications equipment supplier Ciena for around $7.5 billion in stock, according to insiders. The move would allow Tellabs, a popular manufacturer of digital cross-connect switches, to expand amid an industry frenzy on developing high-capacity networks that combine voice, data and video. Ciena's per share value would reach almost $66 a share according to the Nasdaq Stock Market, according to insiders, and Tellabs closed at $65.875. Ciena, a significant supplier to Sprint, experienced trouble when Lucent Technologies's recent capacity-boosting system announcement offers significantly more bandwidth than Ciena's current line. Other problems facing Ciena include Worldcom's purchase reduction, as well as a $30 million payment plus undisclosed running royalties to settle a fiber-optic patent technology dispute with Italian competitor Pirelli.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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Shares of Ciena and Tellabs sink after warning on profit, revenue
Article Abstract:
Stock of Tellabs Inc and Ciena Corp, both of which make telecommunications equipment, declined sharply on Aug 14, 1998, when Ciena announced that results in the 3rd qtr of FY 1998 will be lower than expected. Ciena's shares, which trade on the Nasdaq Stock Exchange, dropped 17.0625%, or 24%, closing at $54.125. Tellabs' shares fell $13.6875, or 19%, closing at $58.125. Ciena and Tellabs are involved in merger talks, and officials of both companies have hastened to reaffirm their continuing support for the deal. Shareholders of each company will vote on the proposal in the week of Aug 17, 1998. Industry observers favor the merger, which the companies announced in Jun 1998.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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Comment about this article or add new information about this topic:
Tellabs to announce deal to buy Ciena
Article Abstract:
Tellabs Inc. is expected to reveal plans to takeover Ciena Corp. for approximately $7.5 billion in stock. Tellabs is a manufacturer of telecommunications equipment. Ciena supplies fiber-optic communications equipment which increases the fiber optic network capacity of major phone companies. The deal is estimated to come out to almost $66 a share. Tellabs produces "digital cross-connect" switches that enable phone companies to control traffic on high-speed data networks.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
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