9/16/98 Dow Jones News Serv. 13:31:00
Dow Jones News Service
Copyright (c) 1998, Dow Jones & Company, Inc.
Wednesday, September 16, 1998
Ciena Says A Rival's Shady Tactics May Have Undercut Merger
By Shawn Young
NEW YORK (Dow Jones)--Ciena Corp. (CIEN) thinks its failed merger with
Tellabs Inc. (TLAB) may have been torpedoed in part by an unidentified
competitor's "legally questionable" maneuvers.
In a quarterly filing with the Securities and Exchange Commission Monday,
Ciena said it is "accumulating evidence that a competitor may have engaged in
targeted and legally questionable activities in order to undermine the
company's market position as well as the proposed merger with Tellabs." The
allegations in the filing were first reported in Wednesday's Washington Post.
The two telecommunications equipment makers scuttled their planned merger
Monday after unexpected changes in Ciena's prospects first forced the
renegotiation of the deal, then made it entirely untenable.
Ciena, of Linthicum, Md., did not say in its filing which of its competitors
it suspects of using underhanded tactics to weaken it by undercutting its
merger plans, nor does it say what tactics were used.
"We're not prepared to discuss names," company spokesman Denny Bilter said
Wednesday. He said the company's investigation is still under way.
In addition to airing suspicion that a competitor played dirty tricks, the
company said investors with an interest in seeing Ciena's stock fall influenced
media coverage of the unraveling deal.
"Additionally, the company believes, certain of the media coverage was
significantly influenced by orchestrated activities of one or more short-
sellers, and of a competitor of the company," Ciena said in the filing, which
does not name the media, the competitor or the short-sellers.
The company said the impact of competitors' activities, legitimate and
otherwise, may have had a significant effect on it and may continue to do so.
Companies mentioned in the filing as competitors, but not singled out as
suspects, include Lucent Technologies Inc. (LU), Northern Telecom Ltd. (NT);
Siemens AG; Pirelli SpA; L.M. Ericsson Telephone Co. (ERICY); NEC Corp.
(NIPNY); Alcatel (ALA) and Pirelli SpA, whose winning of a contract with
Digital Teleport Inc. dealt the final blow to the Tellabs-Ciena deal.
(MORE) DOW JONES NEWS 09-16-98
01:31 PM
|
