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

To: James Fulop who wrote (9061)	5/30/2000 6:54:00 PM
From: Nevin S.	Read Replies (1) \| Respond to of 12623

Popo, what is your take on the rumors that LU is going to buy Chromatis? I'm especially curious about the reference to their "Metropolis" product that is in testing with Quest. By Lisa Sanders, CBS MarketWatch.com Last Update: 4:42 PM ET May 30, 2000 NewsWatch MURRAY HILL, N.J. (CBS.MW) -- Lucent Technologies shares edged higher Tuesday after reports surfaced that the company is in talks to buy privately held optical equipment maker Chromatis Networks for more than $5 billion in stock. Today on CBS MarketWatch Nasdaq soars in best gain to date Record-setting weekend at box office Tech rally fires up Web infrastructure issues U.S. consumers still confident Gasoline futures near 10-year high More top stories... CBS MarketWatch Columns Updated: 5/30/2000 4:30:08 PM ET Lucent shares rose 2 7/16 to 58 3/16. Reuters, citing unnamed industry sources, said Lucent (LU: news, msgs) and Chromatis are close to an agreement, but the deal could still fall apart. Representatives of Chromatis and Lucent declined comment. Lucent could pay between $5.5 billion and $5.7 billion in stock for Chromatis, according to reports from Reuters and from the Financial Times. The deal could strengthen Lucent's product portfolio in the area of optical networking. Such a deal would be one of the highest prices paid by traditional equipment makers seeking a stake in a technology area that is having a major impact on their industry, the FT article noted. It would also boost Lucent in a field where it has fallen behind rival Nortel (NT: news, msgs), which has mounted a series of acquisitions, and specialists such as JDS Uniphase (JDSU: news, msgs), the FT report said. A U.S. source close to the deal on Sunday said negotiations were at a "very advanced" stage. An announcement of a deal is expected within days. The reports also said Lucent intends to announce a major contract with a European service provider during the Supercomm industry trade show next month. Details on the contract were not immediately available. Chromatis, based in Herdon, Va., said on Friday it had successfully completed the first phase of laboratory test of its Metropolis product with Qwest Communications.