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

To: Apakhabar who wrote (3581)	9/9/1998 3:29:00 PM
From: gbh	Read Replies (1) \| Respond to of 7342

One thing I know for sure: if this merger goes through, Ciena's price will NOT trade at close to 40. And there is no reason why it should. The current merger agreement is for .8 TLAB shares for each CIEN share. So even at the current TLAB price of 45, CIEN is only worth 36. And if the merger does go through with no other price change, TLAB's price will almost certainly fall (to 40, or 35 or ???) to reflect the current misfortune of CIEN. A TLAB price of 35 yields 28 for CIEN shareholders. I personally expect the deal to go through, but at an even lower multiplier. Maybe .6 this time. Until CIEN blows up again... gary