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Technology Stocks : Ciena (CIEN) -- Ignore unavailable to you. Want to Upgrade?

To: dougjn who wrote (2901)	9/11/1998 9:31:00 AM
From: Alec Epting	Read Replies (2) \| Respond to of 12623

If TLAB lowers the exchange ratio too much, CIEN will reject the offer. Let's face it, a lot of CIEN shareholders bought the stock in the high 20's. So TLAB has to offer at least that much. I think CIEN will recover significantly by November if TLAB doesn't renegotiate. I don't think TLAB will renegotiate because they don't have enough time to go through the process again. They won't walk away because of the $100M penalty (even if they do, it's a windfall for CIEN). The stock will recover and therefore TLAB shareholders won't have a reason to balk.

To: dougjn who wrote (2901)	9/11/1998 12:14:00 PM
From: Sam Citron	Read Replies (3) \| Respond to of 12623

Yes, this deal is history. For management to approve it might constitute a breach of fiduciary duty. For a TLAB shareholder to vote for it would be a breach of common sense. Sam

To: dougjn who wrote (2901)	9/11/1998 3:22:00 PM
From: Asymmetric	Read Replies (1) \| Respond to of 12623

Any sense of time frame on whether this deal becomes a go/no-go with Tellabs? When the ATT disclosure was released, Tellabs quickly renegotiated it's agreement with Ciena. My hunch is that this weekend is the critical make or break one. I have great respect for Birck and I think he has too much integrity to just let this deal, and Ciena, as a company dangle week after week. Any decision to cut loose on the deal will be made and made quickly. Despite what Tellabs shareholders may think of the deal (basically that it's a lousy one for Tellabs), I think the issue has distilled down to one of Birck's vision of the future direction of Tellabs, his business judgement, his honor as a businessman, and his ability as a high level negotiatior. As a future partner, and a potentially very important one at that, you can't keep going back to someone you have given your trust and word of honor to and keep trying to knock the price down. That sets not just a bad precedence and creates bad blood between Tellabs and Ciena, but sets a dangerous precedence for Tellabs as an ongoing business concern as well...and any future acquisitions as well. And my take is that with the purchase of Coherent Communications, and now the proposed buyout of Ciena, other acquisitions in the not too distant future are also probable. Make no mistake here, Birck is refashioning Tellabs here for the 21st century and additional acquisitions are necessary to accomplish the task. After Lucent is freed in October from it's tax status constraints and begins to change the competitive landscape through selective acquisitons, all other Telecomm/Networking companies will find it necessary to reassess their competive positions and respond accordingly. Tellabs will be no different. To end the deal with Ciena badly will impede Tellabs ability to acquire the technology and the talent they need to compete going out. Who would be able or willing to trust Tellabs' words and signed agreements if/when they come knocking next time? Would you? How binding is a "binding" agreement? I guess not very. And if you are competing with the likes of a Lucent, a Cisco, a Nortel, etc, regarding potentially buying out another company, any deal you would be looking at will have others looking as well. And if you were the company being acquired, and saw what happened with Ciena, well, maybe you'd decide you'd better go with Lucent or Cisco instead. At least they keep to their agreements and their word. I think also that going back to my previous point about Birck, this deal has come down to having his reputation on the line. If Tellabs shareholders do indeed vote the merger down, over his probable objections, I would not be surprised to see him step down from the company. Do Tellabs shareholders really want to see that kind of outcome? As the CEO of the company, how else could one see this other than a rebuke of one's authority to run the company in the long-range interest of all it's shareholders? Birck is one of the great businessmen of the 1990's. Tellabs record speaks for itself. If Birck really wants this deal to go through, he has no other choice but to stake his leadership position within the company on the line. If he isn't willing to do that, he should have never made the agreement with Ciena in the first place, no less renegotiated a lower price. Just some further thoughts. Any responses appreciated. Regards to all. Peter.