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

To: Eric Nelson who wrote (4194)	10/20/1998 4:53:00 PM
From: The ChrisMeister	Read Replies (1) \| Respond to of 7342

I was never a Ciena shareholder. ChrisMeister

To: Eric Nelson who wrote (4194)	10/20/1998 4:57:00 PM
From: Beltropolis Boy	Read Replies (1) \| Respond to of 7342

Ciena, Tellabs seen up on deal speculation NEW YORK, Oct 20 (Reuters) - Shares in CIENA Corp. and Tellabs Inc. <TLAB.O> continued to rise in Nasdaq trade Tuesday on speculation the companies may return to the bargaining table, five weeks after the telecommunications equipment makers called off a $4.7 billion merger. Approaching midday, shares in Linthicum, Md.-based CIENA were up 16.5 percent, or two, at 14-1/8, while the stock of Lisle, Ill.-based Tellabs added 3.4 percent, or 1-5/8, at 49-1/2. The 12-month range for CIENA is a low of 8-1/8 and a high of 92-3/8, while the over the past year Tellabs has traded between 31-3/8 and 93-1/18. Traders in takeover stocks, still smarting over losses incurred by the previously aborted deal, were skeptical about a the possibility of new deal being fashioned so soon after the original agreement went bust. "I think it's too soon (after the previous merger was called off.) If it were the case, why couldn't they restrucuture the deal a few weeks ago?" said one arbitrageur who asked not to be named. A second arb said Tellabs Chief Executive Michael Birck, "is probably taking a look at it. I give it a low probability of happening, but anyting is possible." Traders said the deal speculation was reinvigorated Monday when Birck said in a CNBC interview that he would not rule out another potential transaction, particularly with CIENA. A spokesman for Tellabs declined to comment on the speculation and a CIENA spokesman was not immediately available to comment. The mutual agreement last month to end their deal came after CIENA and Tellabs in August cut by a third, to $4.7 billion, the value of their proposed stock swap merger, which was originally valued at $7.1 billion. The companies cited recent changes in Ciena's financial outlook and a likelihood that shareholders would not approve the deal. "The companies believe that investor reaction to events of the last several weeks raised serious questions about the ultimate ability to obtain shareholder approval for the merger," Ciena then said in a statement. The deal, announced in June, began to unravel after Ciena had its hopes for a major AT&T Corp. contract dashed, warned of lower-than-expected third-quarter earnings, and saw a major competitor muscle its way into an equipment contract with Digital Teleport Inc. that had been exclusively Ciena's.