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To: Dealer who wrote (3888)	9/27/2000 8:06:33 AM
From: Dealer	Read Replies (1) \| Respond to of 65232

CSCO--Corning buys Pirelli fiber-optic biz U.S. fiber-optic maker pays $3.6 billion By Chris Kraeuter & Allen Wan, CBS.MarketWatch.com Last Update: 8:03 AM ET Sep 27, 2000 NewsWatch Latest headlines CORNING, N.Y. (CBS.MW) - Shares of U.S. fiber-optic maker Corning rose Wednesday after it said it'll acquire Pirelli's optical components and devices business for $3.6 billion in cash. Corning (GLW: news, msgs) will pay $3.6 billion to acquire 90 percent of Pirelli's Milan, Italy-based optical components and devices business. It will buy the remaining 10 percent from Cisco Systems (CSCO: news, msgs). Both company boards have approved the deal. Corning said in a statement that it expects to finance the purchase with proceeds received from the issuance of a combination of equity and convertible debt. The purchase is expected to be less than 5 percent dilutive to Corning's 2001 proforma earnings per share and accretive thereafter, it said. The deal is expected to close by the fourth quarter of 2000. Trading in Pirelli's parent companies, Pirelli & Co. (PIREY: news, msgs) and Camfin SpA, was suspended Tuesday on the Italian Stock Exchange. The Italian tire and cable manufacturer has reportedly been trying to focus on the various fiber optics businesses where it has a competitive edge, like optical cables and optical fibers. Corning shares rose $3.62 above Tuesday's official NYSE close to $236.50 in pre-market trading on Instinet. Corning shares closed up $3, or 0.9 percent on Tuesday, to $325