My theory of perhaps why the ceo of tlab said that cien thought cien was a 30 to 40 dollar company a week ago, with the inference that this was too high a price. Maybe this is a trial baloon to see response to that price figure, that is, "spin" in advance of a new friendly takeover, adjusting Ciena shareholder's expectations to a figure somewhat less than the informal demand of $30-$40 share. There must be a reason he would give this comment. It could not have been casual, could it? And now, $40 is a ceiling on price for sure.
September 14, when the cancellation was announced Tellabs President and CEO Michael J. Birck said, ''We continue to believe that CIENA's
products and technology would have provided a good fit with Tellabs' business. However, in light of the changes in CIENA's financial outlook and since required approval of the transaction by Tellabs' shareholders is unlikely, we have therefore mutually agreed to terminate the merger agreement. This decision does not change our interest in optical-networking technology and markets as part of our long-term strategy.''
The deal was originally one share for one share, then later adjusted to .8 shares Tellabs for one share of Cien. Maybe they will try to put it back together for .5 shares or something like that. After TLAB drops 10% on that news, it would equate to $25/share for Ciena.
Geoff Wren |
