TLAB info? Message Board

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Technology Stocks : TLAB info?

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To: DMaA who wrote (2532)	6/3/1998 10:46:00 PM
From: Chuzzlewit	of 7342

Here's a little bit analysis of the merger. At COB yesterday the combined market cap was $17.850 Billion. As of today it is $17.900 Billion. At equilibrium (assuming no change in the total market cap) the shares of TLAB and CIEN should be trading at $63.074. There will be a total of 283.8 MM shares outstanding, with current TLAB shareholders owning 64.2% of the combined entity. All of this assumes a "pooling of interest" merger. Contrast this with the following snippet from an analyst who shall remain nameless: "Did Tellabs overpay for a company about to lose its technology lead to industry behemoth Lucent (LU)?The market seemed to think so, bidding Tellabs stock down a full 5% on the news. Ciena stock, meanwhile, surged 12% as investors scurried to get a piece of the deal's 14% premium to Ciena's price of 57.56 on Tuesday." The point is that the capitalization of the combined entity increased today in the face of another poor day for tech stocks. That tells me that the street likes the deal. TTFN, CTC

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