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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: Mr.G who wrote (2540)	8/28/1998 2:36:00 AM
From: MoneyMade	Read Replies (1) \| Respond to of 119973

Tellabs to buy Ciena for $4.7 bln stock -USA Today Asia, Russia all down...next week I predict we'll see black Monday.. stay away from gold, we'll see new lows... -MoneyMade NEW YORK, Aug 28 (Reuters) - Tellabs Inc (TLAB - news) has agreed to buy fellow telecommunications-equipment maker Ciena Corp (CIEN - news) in a $4.7 billion stock deal expected to be announced on Friday, USA Today reported. Under terms of the renegotiated transaction, approved by both companies' boards on Thursday, Tellabs will swap 0.8 shares for each outstanding Ciena share, executives close to the deal told the newspaper. The deal values Ciena shares at $46.25 based on Thursday's Tellabs close. Both companies declined comment. In structuring a new agreement, the pair hope to end a painfully turbulent period in their stock valuations, the newspaper reported. Ciena's market value has plunged by more than two-thirds from a record $92- a month ago, while Tellabs has lost about a third of its value. Ciena's share price almost halved in frenzied trading last Friday when it failed to get a lucrative contract from AT&T (T - news). Both sides recognised their original 1-for-1 stock swap, valued at $6.9 billion when first announced in June, would have to be reworked, the newspaper said. Ciena dropped 3-7/16 on Thursday to $30-13/16, its lowest close since May 1997, on worries that a deal would not be reached. Tellabs fell 11/16 to $57-13/16. After a hastily arranged meeting with his board in Chicago on Tuesday, Tellabs chief executive Michael Birck flew to Washington the next day to meet Ciena chief executive Patrick Nettles. By late night, the two men, along with Tellabs bankers Goldman Sachs and Ciena advisers Morgan Stanley, had a new deal, USA Today reported.