SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : SDLI - JDSU transition
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: pat mudge who wrote (310)2/20/2001 1:05:52 PM
From: Diana  Read Replies (1) of 3294
 
dailynews.yahoo.com

. . . . ``We're not considering a lawsuit against Nortel,'' Muller said. ``Of course we're talking to lawyers, but it's not easy to sue your largest customer.''

Two days before Nortel chopped its profit and revenue forecasts, it closed a $2.5 billion all-stock deal for a JDS manufacturing plant in Zurich. The warning sent Nortel shares into a dive, lopping about one-third off the stock value and trimming close to $1 billion from the plant's purchase price.

Nortel also represents at least 10 percent of revenues for JDS's components and modules, which boost the speed and capacity of fiber-optic networks. Nortel is the world's No. 1 supplier of fiber-optic systems equipment.

Last week, Muller said he could ``certainly understand'' why some analysts were cutting forecasts below the company's guidance following Nortel's warning.

JDS said that Nortel's warning came as a ``shock'' and it is talking to lawyers to assess the situation.

``It did not come out in the due diligence nor in any of the representations that were made in the contracts,'' Muller said of the plant sale discussions. ``Nortel is saying they just learned about it.''

Muller would not discuss what options JDS would consider, adding the company had not decided on any course of action.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News