>I'm long CSCO, and I would favor a TLAB deal, even thought it would
>mean a short-term hit for CSCO. Any thoughts?
paul.
honestly, i try not to make a habit of foretelling, particularly when it comes to acquisitions and mergers. now that we've gotten the obligatory couch out of the way, here are a few less than definitive and unfortunately, inconclusive musings.
--like lucent moving into networking, cisco must get into telephony. both are vying to define a new generation of networking.
--if i'm not mistaken, cisco is one the last big players without optical/dwdm technology and in my opinion, that can't last.
--as you know, cisco prefers snatching up smaller more easily digestible companies (at least four already this year). witness netspeed, lightspeed, and uh, warpspeed?
--there are other private optical players developing switching technology that could tempt cisco. pirelli (whom ciena settled with earier this month: marketwatch.newsalert.com comes to mind.
--in a way, cisco and tlab have already partnered, given that cisco and ciena previously announced the joint development of next-generation optical 'internetworking' technologies back in apr. "Initially, Cisco and CIENA will work to enable service providers to build high-capacity IP backbones by interfacing the Cisco 12000 Gigabit Switch Router (GSR) directly to CIENA's long-haul, dense wavelength division multiplexing (DWDM) systems."
marketwatch.newsalert.com |
