OT: FYI, Furakawa-JDSU
Furukawa Electric's Canadian Unit Sees Heavy Profit From JDS Share Sale
Dow Jones Online News, Monday, February 07, 2000 at 22:55
TOKYO -(Dow Jones)- Japan's Furukawa Electric Co. said Tuesday that its
wholly-owned subsidiary in Canada, FEJ Holding Inc., will generate a profit
of about 100 billion yen ($919.88 million) through a forward contract to
sell a part of its holding in the U.S.'s JDS Uniphase Corp. in August.
FEJ Holding will sell 4.45 million of the 72.4 million shares it now holds
in JDS Uniphase, reducing its 18.33% stake in JDS to about 17%, an official
said.
After-tax proceeds from the sale will go to Furukawa Electric as a dividend
distribution, which the company will use to help improve its financial
standing, including repaying interest-bearing debts, a Furukawa Electric
official said.
San Jose-based JDS Uniphase (JDSU) recently announced it would be buying
peer E-Tek Dynamics Inc. (ETEK) in a deal valued at about $15 billion. The
company has made four acquisitions in the last four months.
JDS Uniphase makes laser subsystems and equipment for fiber-optic telecom,
signal processing and laser-based semiconductor wafer inspection and
analysis.
JDS Uniphase was created by the $3 billion merger last year between Uniphase
Corp. and JDS Fitel Inc. The firm makes a range of "passive" and "active"
components for fiber-optic networks. JDS's passive components route and
manage light moving through a fiber-optic network, while Uniphase's lasers
transmit the light through the network. Analysts estimate the market for
fiber-optic components will grow to about $6 billion within a couple of
years.
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