Pat,
I know you just posted F.T. article for our information, and thanks as usual.
However, I just listened to the CIEN/TLAB cc. Birk explicitly confirmed the 1:1 stock exchange ratio -- to happen in about 1 week -- with the word "absolutely" and he explicitly stated that the boards of both companies were committed to going forward. I just can't imagine a retreat from so explicit a public statement by Birk.
Anyway, I just don't see anything in the newspaper article that deals with the cc and Birk's comments. Incidentally, he noted that he had bought CIEN for its long-term technology, not for its 3Q results.
Interestingly, Birk attributed the poor quarter to the transition from CIENs to TLABs reporting periods (they differ). Birk made it clear that CIENs best month this past quarter was July, which will be the only month that shows up in TLAB's combined financials. There were other reasons for the poor quarter, but Birk was focused upon the difference in reporting periods.
Incidentally, I believe that Birk owns greater than 50% of TLAB. Some fund investors may be unhappy, but no one can outvote Birk. And CIEN would, of course, have its own legal rights against TLAB should it try to renegotiate the deal.
Gary Korn |
