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

To: Doug Moulton who wrote (5034)	11/2/1998 7:56:00 PM
From: Tim Luke	Respond to of 12623

CIENA rises on deal speculation...again NEW YORK, Nov 2 (Reuters) - Shares of telecommunications equipment maker Ciena Corp. (Nasdaq:CIEN - news) jumped 27 percent Monday, rising for the third-straight day on speculation it may again be a possible takeover target, traders and analysts said. Ciena, the most active Nasdaq issue, gained 4-10/16 to 21-13/16. Ciena's shares have seesawed dramatically since mid-September when it was left at the alter by former merger partner Tellabs Inc. (Nasdaq:TLAB - news), a rival telecommunications equipment maker. Shares of Tellabs fell 2 to 53. Ciena's stock has traded as low at 8-1/8 in mid-October and as high as 92-3/8 in July. Traders Monday attributed Ciena's stock movement to continued speculation that Ciena may find a new suitor. ''It's the same damn story since the (Tellabs) deal broke, but you keep hearing it over and over,'' said an arbitrageur who asked not to be named, referring to speculation that the deal might be back on or Ciena may have found another merger partner. He said he heard of no new rumors in the market. Ciena and Tellabs officials could not be immediately reached for comment, but each have previously declined to comment on market speculation or rumor. Tellabs backed out of the $4.7 billion planned merger, a transaction originally valued as high as $7.1 billion, after a string of bad news about Ciena's business outlook clobbered both companies' shares. At the time the deal was dissolved, Tellabs said it still would consider discussing a future partnership or loose alliance with Ciena. Speculation about a second attempt at a deal between the two resurfaced again in the past two weeks after Tellabs' Chief Executive Michael Birck said Ciena's remained a ''seemingly attractive opportunity'' because of its technology. Ciena's wavelength division multiplexers, or WDMs, divide lightwaves in fiber optic cables, thus boosting a network's traffic capacity without having to add new lines.