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Technology Stocks : Corvis (CORV) -- Ignore unavailable to you. Want to Upgrade?

To: James Fulop who wrote (26)	11/22/1999 11:02:00 AM
From: Techplayer	Respond to of 325

James, Thanks, I will. Brian

To: James Fulop who wrote (26)	11/22/1999 4:02:00 PM
From: Elmer Flugum	Respond to of 325

Same here (a week ago).. Len

To: James Fulop who wrote (26)	12/14/1999 6:58:00 AM
From: James Fulop	Read Replies (1) \| Respond to of 325

Nortel believed to be wooing another promising fibre-optics startup LAWRENCE SURTEES and TYLER HAMILTON The Globe and Mail Saturday, December 11, 1999 Another startup with promising fibre-optic technology says it's being wooed by several firms -- and observers believe Nortel Networks Corp. is among the suitors. Corvis Corp. has held preliminary talks with a number of prospective suitors, Steve Chase, director of marketing and communications for the Columbia, Md.-based company, said yesterday. Although Mr. Chase declined to name the companies or provide any details about the negotiations, financial analysts suggested yesterday that Nortel, Lucent Technologies Inc. and Cisco Systems Inc. are the likeliest contenders. And Corvis's statement follows news that Nortel is in talks to buy tiny Qtera Corp. of Boca Raton, Fla. -- a rival of Corvis -- for up to $3.5-billion (U.S.). Interestingly, both Corvis and Qtera have also hired senior Nortel engineers and executives. Corvis named Glenn Falcao, formerly president of Nortel's Internet service provider unit, as executive vice-president in August. A quest for supremacy and new technology is driving the giants, like Nortel, toward more deal-making, said Richard Woo, analyst at Thomson Kernaghan & Co. in Montreal. "Whoever controls the optical core will control the networks of the future." And he said smaller startups in the emerging and fast-growing optical network market are being driven to deal-making because of the need to distribute their products. "It's faster . . . if you team with up a larger player like a Cisco, Nortel or Lucent to get your products into the channel before a rival like Ciena or Qtera." A spokesman for Brampton, Ont.-based Nortel refused to say whether it is interested in Corvis, and again refused to comment on the Qtera bid. "But we are committed to retaining our No. 1 position in the global optical market," said spokesman Jeff Ferry. Nortel's share price rose $8 (Canadian) yesterday on the Toronto Stock Exchange to close at a record high of $130.50. More than 3.2 million shares were traded. However, most of that gain was attributable to Nortel's announcement of the terms of a $600-million (U.S.), three-year wireless equipment contract with AT&T Corp., said Robert MacLellan, analyst with Canada Trust Securities Inc. in Toronto. (Nortel's gain swamped any impact of a rating downgrade by David Powers, analyst at Edward Jones, on Nortel yesterday to "hold" from "buy.") Cisco may hold the inside edge on acquiring Corvis because of the 10-per-cent stake it already holds in the private two-year-old startup. Cisco also acquired little-known Cerent Corp. for $7-billion in August, further fuelling the high valuations of companies in the optical network field. Cisco spokesman Doug Wills refused yesterday to comment on whether the company is interested in either increasing its stake in Corvis or making a bid for Qtera. "We don't comment on any acquisitions we may or may not do." However, a Cisco bid for Qtera seems unlikely because of Corvis's apparent technical edge over Qtera. Both Corvis and Qtera are developing technology that allows fibre-optic lines to carry signals further than they usually do now without regeneration. But Corvis claims a technical edge over Qtera, having recently transmitted a lightwave for 3,200 kilometres without the need for regeneration, compared with Qtera's claim of 2,400 kilometres. Both companies did their tests with a major Nortel customer -- Denver-based Qwest Communications International Inc. "An acquisition of either company by Nortel could boost their business with Qwest," said Francis McInerney, principal of New York-based consulting firm North River Ventures Inc. Nortel CEO John Roth is also motivated by his consuming desire "to be faster than Cisco," a former Nortel executive said yesterday -- a view echoed by Mr. McInerney. "Cisco's boss, John Chambers, has proclaimed that 'market share goes to the fastest, not the biggest,' so Nortel has got to bag new technology now." John Wilson, an analyst with Warburg Dillon Read in Toronto, said he expects the odds are high that Nortel's deal with Qtera "is going to go through." Other possible suitors were silent on whether a bidding war will be launched for Qtera. globeandmail.com