BMFM,
You are famous. See the following Dow Jones News item:
9/25/98 Dow Jones News Serv. 17:24:00
Dow Jones News Service
Copyright (c) 1998, Dow Jones & Company, Inc.
Friday, September 25, 1998
Chat Room/Cisco -2: Some Pundits Doubt CEO's Remarks -- CIEN
Message boards have been crackling with speculation about potential buyout
partners for Ciena since its deal with Tellabs fell through earlier this month.
The rumors have persisted - pushing up stock prices about 7.7% in early
trading Friday - despite denials by a Ciena official that the company is in
merger talks and Cisco CEO Chambers' recently discouraging remarks.
Chambers told the Washington Post on Thursday there is a "very low
probability" his company will make a bid for Ciena, citing differences in
corporate culture and the fact that the two companies are located on opposite
sides of the country.
And according to one market observer, Chambers should be taken seriously.
"That's classic Chambers and he means it," said Jeff Matthews, a portfolio
manager for Ram Partners. "I have heard him say the same thing about other
acquisition targets that the company did not go after. He definitely means it."
Not everyone agrees.
"Chambers is no dummy," said "Bald Man From Mars," a participant on Silicon Investor, a popular message board site for technology stocks. "If he said Ciena is a fantastic company, then he has to pay a fantastic price. He is talking down his purchase price."
That notion, however, seemed implausible to some message board participants,
namely because of Chambers' reputation as a "straight shooter."
Equally doubtful, investors said, was the notion that Lucent Technologies
could become a contender to replace Cisco in Ciena's affections given the
likelihood of bad blood between the companies after Ciena said it suspected
competitors of trying to sabotage its deal with Tellabs.
Ciena hasn't directly accused Lucent of any wrongdoing. But it has linked the
company's name with an anonymous, disparaging e-mail that was sent to Tellabs.
Lucent said there is no evidence connecting it to the e-mail.
- Johanna Bennett; 201-938-5670
(END) DOW JONES NEWS 09-25-98
05:24 PM
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