Jay....here it is:
To: pass pass (4313 )
From: Scott Kessler Tuesday, Nov 3 1998 12:19AM ET
Reply # 4314 of 4317
Today (Mon.) I attended the TLAB presentation & subsequent breakout session @ the Prudential Tech Conf. in NYC. Asked Mike Birck about what types of acquisitions TLAB would consider doing, specifically what product/technology areas TLAB is looking at. The 1st thing he said was TLAB's not gonna do a "big deal" for a long time (alluding to the CIEN situation). He mentioned when negotiating price w/ CIEN in Apr./May, he insisted on a deal not dilutive after the year following the 1 in which the deal was agreed upon -- implying this is his acquisition rule of thumb. He suggested a TLAB "big deal" is 1 in which the acquiree has/thinks it should have a say in managing the combined entity, etc., & Birck made clear that the types of deals he wants to do are 1s where it's clear TLAB will call all shots. Birck said TLAB would consider acquisitions in the ATM, optical cross-connect & router areas -- but not necessarily of cos., but perhaps of only products and/or technology. Said TLAB already has a formidable optical networking biz and was initially interested in CIEN to get a head-start of 1 yr. & an installed client base. Said the time has elapsed & isn't worth buying for a 6 mo. head-start, irrespective of the other issues (which already made the resurrection of TLAB/CIEN almost impossible. CIEN & PAIR traded up amazingly today, & I think their rises are attributable to a short squeeze coupled w/ an exhaustion of tax loss selling. Rumors of CIEN winning Ks w/ BLS & WCOM are also circulating. People simply attributed the rises to takeover speculation & people fed on the perceived rumor. Birck's talk was pretty bullish. I was pretty impressed w/ the # of new products TLAB is working on. CIEN may announce some big Ks (it's presenting on Thurs.) , so shorting might not be so smart, though I think these Ks might be priced in the stock. But, TLAB isn't buying CIEN, & that definitely isn't priced into TLAB shares. |
