I am not sure if this is good news or bad
NEW YORK, Dec 28 (Reuters) - Paradyne Networks Inc. (NasdaqNM:PDYN - news), a maker of products used to deliver high-speed
Internet access, on Friday said it would buy Elastic Networks Inc. (NasdaqNM:ELAS - news) for about $28.8 million in stock.
The deal comes amid a shake-out in the telecommunications
equipment industry, whose leaders such as Lucent Technologies Inc.
(NYSE:LU - news) and Nortel Networks Corp. (NYSE:NT - news)
(Toronto:NT.TO - news) have racked up multibillion-dollar losses
and slashed their work forces.
Paradyne said shareholders of Alpharetta, Georgia-based Elastic Networks, whose largest shareholder
is Nortel, will receive between 0.199 and 0.269 share of Paradyne common stock for each Elastic
Networks share. Based on Thursday closing stock prices, the deal is worth about $28.8 million, or 86
cents per Elastic Networks share.
The acquisition is expected to be completed in the first quarter of 2002, the companies said.
Elastic Networks shares have been decimated since the company went public late last year at $13 per
share. The stock closed at 60 cents on Thursday on Nasdaq. Shares of Paradyne, based in Largo,
Florida, closed at $3.77.
regards
ralfph |
