Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: DMaA who wrote (2140)	2/17/1998 6:38:00 PM
From: John Carragher	Read Replies (1) \| Respond to of 7342

Dow Jones Newswires -- February 17, 1998 Coherent Commun Up 23% On Tellabs Acquisition NEW YORK (Dow Jones)--Shares of Coherent Communications Systems Corp. (CCSC) climbed 23% Tuesday, following Tellabs Inc.'s (TLAB) announcement Monday that it will acquire the company in a stock swap valued at about $670 million. Each outstanding share of Coherent will be exchanged for 0.72 share of Tellabs common stock. Theodore Moreau, an analyst at Robert W. Baird & Co., said the market reaction displays the positive sentiment toward the deal. He said most view this as a "good fit." "There is some significant operational efficiencies that will be realized in improved market share and some technology feature enhancements to their product," Moreau said. The acquisition is seen as adding to Tellabs' overseas presence, since about 75% of Coherent's sales come from outside the U.S., The Wall Street Journal said. Coherent rose 7 3/8 to 39 3/8, with more than 3.6 million shares changing hands. That compares with average daily Nasdaq volume of 78,000. Tellabs fell 13/16, or 1.4%, to 57 1/8 on volume of 5.4 million, compared with average daily turnover of 2.9 million. Both companies design and produce echo-canceler and other speech-processing devices used in the telecommunications industry world-ide, the Journal said. 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. Moreau said he expects the deal to close by midyear. -By Tara Siegel; 201-938-5176 Powered by Quote Agentr and News Agentr from Gari Software/IDD Information Services Copyright c 1998 Dow Jones & Company, Inc. All Rights Reserved.