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Technology Stocks : TLAB info?
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To: JMD who wrote (3311)8/25/1998 10:20:00 PM
From: Willie C.  Read Replies (2) of 7342
 
Doesn't AT&T hold a considerable amount of Lucent stock? Therefore, when Lucent profits from sales to AT&T doesn't AT&T profit also? If these assumptions are correct then Lucent has a financial edge on beating their competition when bidding for AT&T contracts. If Lucent wants to hedge out competition are they not entitled to negotiate in a similar manner as TLAB did when courting Ciena? Is it reasonable for TLAB to head-off a bidding war for Ciena with a 200 Mil. back-out penalty on the one hand and unacceptable for Lucent to cut a sole supplier deal with AT&T on the other hand?
The issue is, how should Management act to serve the interests of their respective stockholders? Exactly what has taken place, and what exactly "business ethics" are, remains in question. Following this tact I would like to pose the following question. What would be the publics attitude if Lucent had entered into an exclusive supplier agreement with AT&T and AT&T had not disclosed it allowing a public perception to continue that Ciena was a contender for that same equipment contract until some time after the merger. I'm sure that most TELAB stockholders would prefer to be negotiating from their present situation rather than the latter.

Everyone is well aware of the familial relationship between AT&T and Lucent. Considering the competitive threat a TLAB/CIEN merger presents Lucent, especially when they are competing right at AT&T's door, Lucent better not lose out or their stockholders are in trouble!

Some may say that this is another case of blood being thicker than water, but in the end its about money isn't it?

Respectfully,

Willie C.
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