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Technology Stocks : MRV Communications (MRVC) opinions? -- Ignore unavailable to you. Want to Upgrade?

To: Richard Birecki who wrote (10081)	8/18/1998 8:00:00 PM
From: J. Conley	Read Replies (2) \| Respond to of 42804

Richard, I am not saying it will be ineffective. First, I think people purchasing networking equipment are somewhat sophisticated and they already know Cisco, and those who are buying or are inclined to buy MRVC's products are unlikely to be affected simply because Cisco increased their marketing efforts. I don't wholeheartedly disagree with your or drone's comments, perhaps I should have said "negligible" effect and we could agree on that. However, as a counterpoint, if Cisco's marketing effort raises the consciousness of the general population's (and investor's) perception of networking companies with the resulting perception that networking companies are an increasingly important and essential part of the "new economy", then MRVC (at least as a stock) may actually benefit. Second, I have no reason to doubt your statement that you are certain that management does not want a buyout at this price. In fact, I agree. My point is that I just do not believe management would tell us, any of us,...until terms are final. There is no good reason to do otherwise. One reason I believe management is not adamantly against being acquired is because they have authority to issue up to 1M share of preferred stock (and dictate the terms of issuance) w/out shareholder approval. The preferred would be/is management's method of retaining control. Without the preferred, it would be very difficult for management to stop a tender offer of say, 35 or 40 dollars a share. So, are they attempting to control the company (although they could) over holders of the common shares, no. If anyone has a different take on this, please comment. Does anyone know whether the company has a contract or obligation not to issue the preferred. jc