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

To: Little Investor who wrote (2948)	9/12/1998 10:35:00 AM
From: gbh	Respond to of 12623

Neerja, if TLAB chooses to walk away from the deal, I believe its unlikely CIEN will see a nickel of that $100M. TLAB would likely claim they were misled concerning current and future business prospects. It would almost certainly turn into a protracted court battle, or be settled for some relatively small amount. And if this deal falls apart, CIEN will trade below $10. No new suitor will step right in, as others will weigh the risk of purchasing rather than partnering. And since TLAB's management says they invested in CIEN for the long term, the only way they can gain credibility from their shareholders is by keeping their word. Unfortunately, the opposite is likely true. Most shareholders would be happy to see the deal fail, and there shares move higher. To me, it seems like TLAB did not do a thorough enough DD regarding the current customer base. They're probably comfortable with CIEN technology, but now spooked about the choppiness of the business.