Well, now we are in M&A territory. Perhaps someone with background can shed some light on the situation. With SDLI now trading at about a 20% arb discount, it looks on first glance like the DOJ may be seen as a dealstopper. Especially with the DOJ blocking WCOM/FON, and with JDSU having just made a big acquisition, people may expect the DOJ to be hawkish. However, we have to assume that JDSU, having just been through the ropes, has a decent perspective on what can pass muster. And one thing I wonder:
Since SDLI obviously shopped this deal around, at least to GLW, perhaps that will cut down on anti-competitive fears. GLW could have made the deal but chose not to pay up. Therefore, they should have no complaints if somebody else decides to ante up. Also, Scifres and Straus mentioned that the deal would be good for customers, so what's not to like. That is my amateur layman's take on this. I would be interested to hear others' perspectives. |
