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

To: Asymmetric who wrote (2932)	9/11/1998 3:58:00 PM
From: Kachina	Read Replies (3) \| Respond to of 12623

Nightmare scenario - The worst I can think of. TLAB buys up the bottomed out stock and gets cooperation from management at CIEN to allow a huge controlling interest to be aqcuired without problems. (This is still a friendly acquisition now.) This makes sense for both as a way to defray the cost differential at merger time. They want to defray merger costs by selling back to themselves at the inflated price. Shareholders vote the deal down. TLAB has enough shares to scuttle any attempt by any other company to acquire CIEN. Tankward we go. TLAB has bracketed its "investment" with strategically acquired puts such that as it gets flushed, it does not lose significant money. Then, having destroyed its bed partner so that no one else can make anything of it either, TLAB is in a better position than if it let CIEN get acquired by another firm. I only see one problem with this scenario - If CIEN is able to fly on its own. But this also is good for TLAB. If it does, then it can go back in a friendly or hostile move and re-do the deal. Or, if it has gone and acquired someone else, it can just take its profits and run. That looks pretty win-win for TLAB to me. Please understand - I am trying to figure out the worst possible scenarios for this mudsucking catfish. ;-) (And trying to keep my humor dry...)