THREAD---Lucent To Buy Yurie Sys For $1B Cash, Or $35/Share
MURRAY HILL, N.J. (Dow Jones)--Lucent Technologies Inc. (LU) agreed to purchase Yurie Systems Inc. (YURI) for about $1 billion cash, or $35 a share.
In a press release Monday, Lucent said it will take a charge in the third quarter on the purchase. The charge will cover an accounting write-off for in-process research and development.
Lucent expects the transaction to be slightly dilutive to earnings per share in the first full year of operation.
In the year ended Sept. 30, 197, Lucent earned 84 cents a share, including charges. Excluding charges, net income in 1997 was $2.34 a share.
Yurie provides asynchronous transfer mode wide area network access equipment for service providers, corporations and government users.
Nasdaq-listed shares of Yurie were halted Monday. They last closed up $2 5/8, or 9.1%, at $31 1/2 Friday. Average daily volume is 605,463 shares.
NYSE-listed shares of Lucent were also halted Monday. They last closed down 3/8, or 0.5%, at $73 3/8 Friday. Average daily volume is 7,234,692 shares.
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