Ciena, ONI spell out break-up fees in deal
Monday February 25, 5:54 pm Eastern Time
NEW YORK, Feb 25 (Reuters) - Optical networking company Ciena Corp. (NasdaqNM:CIEN - news) would receive $36.7 million if another bidder emerges for ONI Systems Corp. (NasdaqNM:ONIS - news), according to documents filed on Monday with regulators.
Ciena, which agreed last week to buy ONI for $900 million in stock, would receive the break-up fee, as well as up to $2 million in expenses if ONI's board supports another bidder, according to an ONI filing with the U.S. Securities & Exchange Commission.
If Ciena, based in Linthicum, Maryland, breaks off the deal because a company bids for Ciena, San Jose, California-based ONI would receive $87.2 million, as well as up to $2 million in expenses, according to the documents.
Ciena made the deal in an effort to bolster its presence in the metropolitan optical networking markets, which are expected to see stronger growth than the long-distance markets served by Ciena. The deal is expected to close in the second or third quarters. |
