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Technology Stocks : Safeguard Scientifics SFE -- Ignore unavailable to you. Want to Upgrade?

To: Sheldon C. who wrote (1096)	2/16/1998 9:53:00 PM
From: David Lawrence	Read Replies (1) \| Respond to of 4467

Major Safeguard news: Tellabs to buy CCSC for stock.... LISLE, Ill. -(Dow Jones)- Telecommunications-equipment maker Tellabs Inc. Monday said it will acquire Coherent Communications Systems Corp. in a stock swap valued by the companies at about $670 million. Tellabs said each Coherent outstanding share will be exchanged for 0.72 shares of its common stock. Shares of Tellabs (TLAB) closed at $57.938 Friday, while shares of Coherent Communications (CCSC) closed at $32. Both issues are traded on Nasdaq. Ashburn, Va.-based Coherent Communications Systems develops voice-enhancement technology and audio-conferencing products. For the immediate future, Tellabs said its product lines and those of Coherent will be maintained separately to ensure that the needs of existing customers are met. Following the merger, the combined company will explore new product-development projects Tellabs said excluding transaction charges, "modest" earning increases are expected from the merger in 1998 and 1999. The transaction will be accounted for as a tax-free pooling of interests. Coherent Communications, with 1997 earnings of $14.0 million, or 90 cents a share, on sales of $73.7 million, will become a unit of Tellabs under the merger agreement. Tellabs reported 1997 earnings of $263.7 million, or $1.42 a diluted share including a $13.9 million investment gain, on sales of $1.2 billion. The merger is subject to approval by appropriate government agencies and Coherent stockholders. Tellabs said the deal has already been approved by Coherent's board and largest stockholder, Safeguard Scientifics Inc. (SFE), which owns about 32% of Coherent.