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Technology Stocks : TLAB info? -- Ignore unavailable to you. Want to Upgrade?

To: DMaA who wrote (2137)	2/17/1998 7:32:00 AM
From: John Carragher	Read Replies (1) \| Respond to of 7342

The Wall Street Journal -- February 17, 1998 Tellabs Agrees to Pay $670 Million in Stock For Virginia Company LISLE, Ill. -- Tellabs Inc. said it agreed to acquire Coherent Communications Systems Corp., a small speech-processing technology concern, in a stock swap valued at about $670 million. Terms call for Coherent holders to receive 0.72 Tellabs common share for each Coherent common share they own. In Nasdaq Stock Market trading Friday, shares of Coherent gained $1.25 to $32 while those of Tellabs increased $1.125 to $57.9375. Tellabs said that, excluding one-time transaction costs, it expects the agreement to be modestly accretive to earnings this year. For the fiscal year ended Jan. 20, Coherent reported sales of $73.7 million and net earnings of $13.9 million, or 90 cents a basic share. Tellabs reported sales for fiscal 1998 ended Jan. 2 of $1.2 billion and earnings of $263.7 million, or $1.46 a basic share. Both companies design and produce echo-canceler and other speech-processing devices, used in the telecommunications industry world-wide. The acquisition is seen as adding to Tellabs' overseas presence, since about 75% of Coherent's sales come from outside the U.S. Coherent's board, which unanimously approved the acquisition, is recommending it to shareholders. The company, based in Ashburn, Va., said Safeguard Scientifics Inc., which holds an estimated 30% of Coherent, agreed to vote in favor of the transaction. The deal, which is expected to be accounted for as a pooling-of-interests and tax-free reorganization, is subject to approval by various government agencies. Powered by Quote Agentr and News Agentr from Gari Software/IDD Information Services Copyright c 1998 Dow Jones & Company, Inc. All Rights Reserved.