Totally agree. I just hope they don't follow the Shiva path. Falling from $80's, and holding out. They held out all right for a $6 all cash lowball deal from Intel.
I think the botched TLAB deal is the benchmark to compare what happens with Ciena either way.
Case #1, Ciena probably could've gotten $25 a share from TLAB. Surely that, or thereabouts, was probably offered after the 1 share, then 0.8 share offers. Ciena says that they walked in order to "rebuild" shareholder value. If they can't rebuild shareholder value better than $25, then it was a bad deal that will have consumed time for no reason.
Case #2, If Ciena is eventually taken over for less than $25, then the CEO did not get the best deal for his shareholders. If this attempt to rebuild shareholder value fails, then I fear that Ciena could fall through the floor. Any takeover then would be at a depressed valuation, probably much less than $25 / share.
I'm willing to give the CEO the benefit of the doubt for now. I sincerely hope that he did not let his ego drive him to reject the TLAB deal just because it was less than originally negotiated.
Patiently waiting,
John Dodson |
