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Technology Stocks : Stock Swap
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To: Andrew Vance who wrote (15368)8/25/1998 12:15:00 PM
From: Kachina  Read Replies (1) of 17305
 
Well, I took a big dive into Ciena (CIEN) this morning after digging into the picture. Apparently what killed this stock was the dumping of arbitrage positions after the merger vote was killed at the literal last minute by a phone call from AT&T. AT&T had been "evaluating" Ciena products for over a year, and AT&T exec called to disclose new pertinent information that they would not be buying Ciena products. This threw the legal switch that meant the merger with TLAB could not go forward since the info was not disclosed to shareholders. BUT - no AT&T revenue was discussed or planned on anyway in Ciena's disclosures. It was a technicality.
Does the fact that AT&T execs hold a lot of Lucent stock have anything to do with this play/ploy?

This caused the arbs to close out their positions and scramble which is why the stock hit 27.

But - Lucent still lags way, way behind, about a year. And Ciena is still selling to most of the world. Plus, AT&T could, and is quite likely to "reevaluate" their position on Ciena.

There is a second merger suitor waiting in the wings who has put an offer on the table which was roughly equivalent. This is rumored to be Cisco, which makes sense.

The TLAB merger vote has been rescheduled to 9/9/98.

Wish me luck folks, I hopped this train.
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