Here's something down the merger line:
quote.bloomberg.com
Ciena Rises on Juniper Bid Speculation, Analyst Says
(Update2)
By Justin Baer
Ciena Rises on Juniper Bid Speculation, Analyst Says (Update2)
(Adds background in 11th paragraph; closes share prices.)
Linthicum, Maryland, Feb. 16 (Bloomberg) -- Ciena Corp.
shares surged 18 percent to a record on speculation that Juniper
Networks Inc. may be considering a bid for the maker of fiber-
optic equipment, an analyst said.
Ciena climbed 18 to 117 11/16. The stock has doubled this
year and has risen more than sixfold since April. Juniper rose
7 5/8 to 220 1/2. It's climbed more than 19-fold since the
company's initial stock sale in June.
Speculation on a possible agreement between Juniper and Ciena
``is making the rounds in the investment community,' said Kevin
Slocum, a managing director at Wit SoundView, who rates Ciena a
``strong buy.'
Juniper makes equipment that routes Internet traffic for
telecommunications companies. Ciena's products boost capacity on
fiber-optic networks. Buying Ciena could help Juniper compete with
No. 1 Internet-equipment maker Cisco Systems Inc., which has
acquired several companies to expand into fiber optics.
``As a combination, it would be similar in nature to what
Cisco is today,' Slocum said. ``It's a combination that defines
how people are designing the networks of the future.'
Ciena spokesman Aaron Graham wouldn't say whether the company
is in talks with prospective bidders.
``We're committed to going it alone,' Graham said.
Officials at Juniper, based in Mountain View, California,
declined to comment.
Takeover Target
Takeover speculation has surrounded Ciena since Tellabs Inc.
ended its bid for the company in September 1998. Tellabs scuttled
the $7.1 billion agreement after Ciena warned of lower earnings
and failed to get two contracts, sending Ciena's shares tumbling
70 percent. The stock dropped as low as 8 3/16 in October 1998.
Juniper and Linthicum, Maryland-based Ciena share technology
to link the companies' products. The year-old alliance lets the
companies sell a package of optical transmission gear to carry
Internet traffic with routers to direct it.
Ciena's shares got a boost in November 1999 amid renewed
speculation that Cisco could be planning a bid. The companies
declined to comment at the time. |
