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Technology Stocks : Ciena (CIEN) -- Ignore unavailable to you. Want to Upgrade?

To: James Fulop who wrote (8025)	2/16/2000 2:20:00 PM
From: Nevin S.	Read Replies (2) \| Respond to of 12623

Hey Popo, what's your take on the JNPR rumor? My sense is that while JNPR has a larger market capitalization than CIEN (33.1 Bil vs 13.8 Bil) CIEN is a more mature company both in terms of product development, customer base, and breadth of product offering. So, why would CIEN be acquired by JNPR? I see synergies to a combined operating organization both in terms of access to customers (access by JNPR to CIEN's customers) and ability to offer more complete solution (CIEN able to offer a more complete package including optical routers), so I can see where a merger might make sense. The $64 K question is then, who acquires whom? If CIEN acquires JNPR, it would be costly as well as dilutive to their earnings. If JNPR acquires CIEN due to differences in market cap, wouldn't this also be a dilution to CIEN shareholders? I think we'd end up with shares of a combined organization with negative operating results for some time, where from what it looks like today, CIEN crossed breakeven last quarter and should produce some modest earnings over the next few quarters.