Ciena shares continue to shoot higher
By Jeffry Bartash, CBS MarketWatch
Last Update: 2:21 PM ET Nov 2, 1998 NewsWatch
LINTHICUM, Md. (CBS.MW) -- Shares of Ciena Corp., whose stock tanked after its merger with Tellabs Inc. fell through last month, continues to surge amid rumors of a revival of that deal and talk of some big new contracts.
Since Oct. 28, when shares closed at 12 1/4, Ciena (CIEN) has almost doubled. On Monday, it's up 3 7/16 to 20 5/8. The stock has been the most actively traded security on the Nasdaq over the past four days.
Still, it's well of its 52-week high of 92 3/8, achieved in July when the Tellabs deal was first announced. It fell as low as 8 1/8 after the deal collapsed.
CIEN
NASD
Last Chg.
20 11/16 +3 1/2
% Chg. Vol.
+20.36% 28,363,600
Day Lo. Day Hi.
17 7/8 21 1/4
Open Prev.
18 31/32 17 3/16
As of
Nov 02/98 2:30 pm ET
Last Trade
Nov 02/98 2:15 pm ET
15 MIN. DELAY
In recent days, speculation has resurfaced that the company is on the verge of announcing some major contracts with regional Bell operating companies, possibly at a conference in Boca Raton, Fla., Wednesday sponsored by Soundview Financial Group.
That's fueled talk of a revived merger agreement with Tellabs. (See Thom Calandra's StockWatch) or potentially another suitor.
A Ciena spokeswoman last week declined to comment on the possibility of new Bell contracts and said, "We are not seeking a merger right now."
Yet Tellabs (TLAB) CEO Michael Birck gave life to rumors of a revived merger two weeks ago during an interview on CNBC, when he said Ciena is "a seemingly attractive opportunity." Company officials declined further comment on Oct 28.
The merger fell through in mid-September following a swoon in Ciena stock after news that it would not receive several major contracts, including one with AT&T (T). See related story
Tellabs shares have also been rising steadily over the past month. It rose 1 1/2 to 56 1/2 in recent trading.
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