SDL CFO Says Sale to JDS to Win Approval by
December (Update1)
By Justin Baer
Scottsdale, Arizona, Sept. 12 (Bloomberg) -- SDL Inc. Chief Financial Officer
Michael Foster said U.S. regulators likely will approve his company's $34
billion acquisition by rival fiber-optic components maker JDS Uniphase Corp.
in December.
The companies, which agreed to the acquisition in July, are collecting
information to answer a second round of questions from U.S. Justice
Department officials, Foster said during a presentation at the Dain Rauscher
Wessels Technology Conference in Scottsdale, Arizona. JDS Uniphase and
SDL both make parts used to equipment that beams information across
fiber-optic networks.
``It's going at least as well as what we expected,'' Foster said of the
companies' dealings with regulators. ``We still think it looks like December is
probably the most likely month. We should be done by then, and it's hard to
believe it would happen before then.''
JDS Uniphase, the No. 1 maker of optical components, is buying SDL to add
powerful lasers used to strengthen the signals that travel through
telecommunications networks. Company executives have said they expect the
agreement to receive close regulatory scrutiny, similar to the review of the
company's agreement to buy E-Tek Dynamics Inc. The E-Tek acquisition
closed in July.
SDL shares fell 19.69 to 324.25 in Nasdaq Stock Market trading of 7.7 million.
JDS fell 6.56 to 103.19 in Nasdaq trading of 32.3 million, the fourth most active
stock on U.S. markets.
Both companies are based in San Jose, California. JDS agreed to swap 3.8
shares for each SDL share.
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