By Susan Taylor
OTTAWA, June 28 (Reuters) - An overwhelming majority of
shareholders in optical network equipment supplier JDS FITEL
Inc. (TSE:JDS) on Monday approved the firm's merger with
Uniphase Corp. (NASDAQ:UNPH)
In a slam-dunk, 99 percent of votes cast in a meeting by
shareholders in Ottawa-area-based JDS, representing slightly
more than 46 million shares, were in favor of the union with
San Jose, California-based Uniphase Corp.
Proxy votes cast before the meeting had already given JDS
the two-thirds majority it required to proceed with the union.
Uniphase shareholders are also voting on the merger today.
"For JDS, and for me personally, this is a very significant
moment," said Jozef Straus, chief executive of JDS, referring
to a "historic walk" toward a new corporation called JDS
Uniphase Corp. "We are here to lay the foundation for a new
beginning."
The merger will likely close July 5 after court approval on
June 30 and Toronto Stock Exchange approval to list
exchangeable shares. Costs to close the acquisition, estimated
at $12 million, will be split between the two firms.
Analysts have praised the deal, first announced in January.
The $6.1 billion merger creates a powerhouse with each
company's technology dominating its respective market.
The combined firm will have 4,700 staff, 12 sites in eight
countries and annual revenue of about C$930 million.
A growing push for faster networks and services that send
more data over networks is driving demand for technology from
JDS and Uniphase.
JDS supplies passive components, which boost the capacity
of fiber-optic networks to carry more data traffic. Uniphase
sells active components, which push large volumes of data along
those pipes.
There is little overlap between the two firms, Straus said
during a break from the shareholders' meeting. He does expect
that restructuring efforts will focus the two firms' sales
forces on large accounts.
The combined company will offer one-stop shopping and
faster response to customers, which include Nortel Networks
Corp. (TSE:NT) (NYSE:NT) and Lucent Technologies Inc. (NYSE:LU), and
eventually lower product costs.
It is expected that products that combine technology from
the two companies will be released in three to six months,
Straus said.
JDS stock was up C$1.50 by midday to reach C$113.50 on the
Toronto Stock Exchange, while Uniphase was up $1.63 to $153 on
the Nasdaq. |
