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

To: Gary Korn who wrote (2940)	9/11/1998 7:18:00 PM
From: Jon Cave	Read Replies (1) \| Respond to of 12623

Money Magazine pg. 81 October 1998 issue Lucent, Nokia, Tellabs... The world of telecom equipment has had its ups and downs. The article discusses Lucent and Nokia. In the last paragraph it states the following about Tlabs and Ciena: "What about Tellabs, the network developer that agreed to acquire fiber-optic equipment maker Ciena in June? By Aug. 13, Tellabs stock was up 24 %, thanks in part to the buzz about Ciena; now the stock is back where we recommended it because of concerns about the deal. Our advice: Sit tight. Sure, Ciena pre-announced an earnings shortfall and then the loss of a potential AT&T order. But Ciena remains a good acquisition; there's enough fiber-optic business to make up for the AT&T disappointment. And Tellabs remains a quality franchise."

To: Gary Korn who wrote (2940)	9/12/1998 12:48:00 AM
From: Gary Wisdom	Read Replies (1) \| Respond to of 12623

Gary, re: unwinding of Ciena position by Tellabs 6.5% of Ciena would be about 6.7MM shares. Considering that over 55MM shares of Ciena have traded in the past 3 days alone, I can't imagine that it hasn't been fairly easy to dispose of this holding without waiting until the last hour of the day on a Friday. (Plus, there wasn't that much volume the last hour). Here's my conspiracy theory: Merrill is the investment banker for another firm that is dying to buy Ciena. So, they are pummeling the stock in order to thwart the Tellabs deal. They might lose a little trading, but they'll make up for it with investment banking fees. If that is the case, both Ciena and Tellabs will skyrocket. Ciena because of a better offer; Tellabs because they'll no longer have big dilution. Of course, this is my dream. But stranger things have happened.