To: Rande Is who wrote (16677 ) 12/13/1999 7:34:00 PM From: Bucky Katt Respond to of 57584
Rande, WSTL, an old dog, buying TLTN = a dsl powerhouse>> CHICAGO, Dec 13 (Reuters) - Telecommunications equipment makers Westell Technologies Inc. (NasdaqNM:WSTL - news) and Teltrend Inc. (NasdaqNM:TLTN - news) said Monday that Westell has agreed to acquire Teltrend for about $205 million in a bid to bolster Westell's high-speed communications offerings. Under terms of the stock deal, Teltrend shareholders will receive 3.3 shares of Westell stock for each Teltrend share. Based on Monday's closing price of 12-3/16 for Westell, the deal values Teltrend shares at about $40.84 a share, a 69 percent premium over Teltrend's Monday closing price of 24-1/8. Aurora, Ill.-based Westell said it will take a one-time charge for merger and related expenses upon the closing of the deal which is expected to occur in the fourth quarter of Westell's fiscal year 2000, which ends in March. The combined company expects to be profitable in its fiscal first quarter ending in June 2000. St. Charles, Ill.-based Teltrend designs, manufactures and markets a broad range of telecommunications and data communications products used by telephone service companies to provide voice and data services.By merging Teltrend with a unit of Westell, the combined company will strengthen its high-speed DSL (digital subscriber line) technology products. ''We very much did this for DSL. We really strengthened the part of our business that we weren't growing yet in the way we wanted it to,'' Marc Zionts, chief executive of Westell, said in a conference call with analysts, investors, and employees. It will grow now! BTW, POCI, up 700% since first posted........