Hi Pat,.Re:.Clearly GLW is building their f.o. capabilities and there's enough evidence of compatibility with SDLI that I'd leave them on my list of possible partners:
Also looked at GLW over the weekend and ruled them out based on their existing debt. Or maybe debt, in a rising interest rate environment, doesn't matter anymore?<g>
GLW recently acquires
- Optical Polymer Group from Honeywell
- Siemens Worldwide Optical = $1.9b paid for by debt offering
corning.com
corning.com
- Oak Industries = $1.8b or 83 shares GLW/each share Oak
- Optovac = $ ?
Lucent Technologies Extends Contract with Corning for Optical Amplifiers
corning.com
LT Debt = $1.3b
Debt/equity = 0.75
Also ruled out LU based on existing debt.
LU debt/equity = 0.52
Finally, it appears to be too much overlap between SDLI products and JDSU products to assume JDSU might be still shopping. Also, JDSU must by now have more than they can handle effectively.<g>
jdsunph.com
-OCLI = $ 2.8b or 1.856 shares JDSU
edgar-online.com
-ETEK = $15b or 1.1 shares JDSU
-SIFAM = $60 m lb sterling payable in cash
-Oprel = $
-EPITAXX =$400 m payable in stock (2.23m shares)
-Ramar Corp = terms not disclosed
Some other notes from searching SEC stuff.
. Historically, orders from a relatively limited number of OEM customers accounted for a substantial portion of Uniphase's and JDS FITEL's net sales from telecommunications products. Two customers, Lucent and Nortel, each accounted for over 10% of JDS Uniphase's net sales for the quarter ended September 30, 1999.
jdsunph.com
JDS Uniphase and Lucent Technologies Extend Their Multiyear Agreement for Optical Amplifiers
Finally, two others, besides NT and ALA, which might be interested in SDLI are CIEN and TLAB, neither of which are carrying any debt that I could find.
I'm not sure what affect a takeout of SDLI would have on JDSU since the market appears to be of sufficient size to accommodate most any configuration.
If my understanding is correct, LU, NT and ALA are mostly systems suppliers and given the anticipated market size and growth, it may be in their interest to have in-house components, both for time to market of systems and 1st call on supplies. Would acquisition by one of the big systems providers have the effect of removing market competition for components?
Cheers,
Lee
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