To all- just a copy of E-mail I sent.Tom Scottino
Tom-Please pass this note on to Mike Birck and other officers or board members(as you see fit).
The recent scramble to acquire CIENA, was a good idea ,but hit a lot of landmines. I say forget acquisitions for now and concentrate on joint-ventures, memos of understanding etc. When you are highly visible on a merger, you set yourself up to too many hits. From competitors. Merging efforts showed that every" little" leaked news release and event affected CIENA'S stock and therefore put shareholder approval in jeopardy.
I feel 2 parties should forget AT&T and Lucent, and any investigations and allegations. They belong to the wrong frat. house and will never cooperate.
Also I sense a great deal of like-mindedness between Tellab's and Ciena. Pat and Mike sounds like a good team. It's much better to do your negotiations in secret, and then just come out with a joint memo. of understanding.
So as to not waste this 2 months of study, looking, analyses etc. I feel Tellabs and Mike needs to put STRONG efforts in coming up with a joint-venture, memo. of understanding, some sort of symbiotic relationship between the two companies. Looking at the Memo. Of understanding between CISCO and CIENA on 4/20/98 at ( ciena.com where they announced plans to develop carrier class solutions to overlay switching technologies into optical networks, I'd like to see, if possible, a similar announcement between Tellab's and CIENA or someone similar. I know that I'm preaching to the choir here and that some level of talks are taking place, but I'd like to see them boosted to TOP PRIORITY. If not possible with CIENA, then someone else of equal or greater benefits to Tellab's.
Symbiosis in nature is defined as " living together in intimate association or even close union , of two dissimilar organisms or companies, such association is advantageous or often necessary to one or both parties and not harmful to either" Look at a soybean, by itself, it can yield 30 bushels per acre. With bacteria as partners it can make 80 bu. .Bean gets nitrogen and the bacteria gets a house, protection, increased growth and gets CHO and sugars in return. The soybean did not have to buy the bacteria in order to get the benefits of the symbiotic relationship. Surely wise board members, management teams, CEO's, CFO's of both companies can figure out a way to be as smart as a soybean plant.
The benefits for Tellab's would be increased confidence in it's long term growth as well as improved long term growth. Shareholder value would go back to a more normal 40 PE ( you have to admit that to go from $92 to $37/share was a hell of a ride and provided fuel for irate stockholders to bend Mike's ear).
The benefits for Ciena or another company would be a new steady customer, exposure to increased sales, a steadying affect on it's beta and quarterly earnings and lastly increased shareholder value. ( it's ride from $91 to $13 was a classic) Various secrets and patents, manufacturing techniques are maintained by each company.
Mike I realize that you are already way ahead of me on these kinds of thoughts, but I wanted to put in my 2 cents on giving such efforts THE UTMOST PRIORITY.
Sincerely Yours
Dave Dickerson A large, long-time Tellab's Stockholder |
