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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: mariner who wrote (3262)	6/29/1999 9:16:00 AM
From: gdichaz	Respond to of 54805

Re JDS Uniphase (UNPH) merger - a view from Canada Talk : Communications : JDS Uniphase Corporation (UNPH) To: I.M.P. (425 ) From: Walter Jacquemin Tuesday, Jun 29 1999 8:15AM ET Reply # of 426 By Susan Taylor OTTAWA, June 28 (Reuters) - An overwhelming majority of shareholders in optical network equipment supplier JDS FITEL Inc. (TSE:JDS) on Monday approved the firm's merger with Uniphase Corp. (NASDAQ:UNPH) In a slam-dunk, 99 percent of votes cast in a meeting by shareholders in Ottawa-area-based JDS, representing slightly more than 46 million shares, were in favor of the union with San Jose, California-based Uniphase Corp. Proxy votes cast before the meeting had already given JDS the two-thirds majority it required to proceed with the union. Uniphase shareholders are also voting on the merger today. "For JDS, and for me personally, this is a very significant moment," said Jozef Straus, chief executive of JDS, referring to a "historic walk" toward a new corporation called JDS Uniphase Corp. "We are here to lay the foundation for a new beginning." The merger will likely close July 5 after court approval on June 30 and Toronto Stock Exchange approval to list exchangeable shares. Costs to close the acquisition, estimated at $12 million, will be split between the two firms. Analysts have praised the deal, first announced in January. The $6.1 billion merger creates a powerhouse with each company's technology dominating its respective market. The combined firm will have 4,700 staff, 12 sites in eight countries and annual revenue of about C$930 million. A growing push for faster networks and services that send more data over networks is driving demand for technology from JDS and Uniphase. JDS supplies passive components, which boost the capacity of fiber-optic networks to carry more data traffic. Uniphase sells active components, which push large volumes of data along those pipes. There is little overlap between the two firms, Straus said during a break from the shareholders' meeting. He does expect that restructuring efforts will focus the two firms' sales forces on large accounts. The combined company will offer one-stop shopping and faster response to customers, which include Nortel Networks Corp. (TSE:NT) (NYSE:NT) and Lucent Technologies Inc. (NYSE:LU), and eventually lower product costs. It is expected that products that combine technology from the two companies will be released in three to six months, Straus said. JDS stock was up C$1.50 by midday to reach C$113.50 on the Toronto Stock Exchange, while Uniphase was up $1.63 to $153 on the Nasdaq. For anyone interested in a potential king in fiberoptics components. Cha2

To: mariner who wrote (3262)	6/29/1999 2:32:00 PM
From: edamo	Read Replies (3) \| Respond to of 54805

mariner...re "taxation"...new to the thread, graciously invited to participate by uncle frank. not familiar with canadian tax laws, but you do have the ability under american law to tap the equity in your csco, without incurring a current tax year liabilty. consider writing covered leap calls against the underlying csco in your portfolio,the premium amount available depends on how deep or out of the money the strike is and whether you would like to assume the tax liability in 00,01,02. it is safe, but your csco will be encumbered either until the contract expires or the stock called away...it is a way to access tied up capital without immediate tax liability, getting a premium over what you would sell at today, and the chance that if the strike is never reached, the stock and the premium is yours...feel free to ask any questions...best regards, ed a.