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To: Thean who wrote (7783)	3/15/1999 12:41:00 PM
From: SJS	Respond to of 14427

Thean, About CIEN: _____________ CIENA CORP. (CIEN) 24 15/16 -1 7/8. Shares of provider of networking solutions are not reacting kindly to the announcement that this provider of dense wavelength division multiplexing technology will acquire two privately held optical communications companies for stock. Given that shares of CIENA have appreciated lately on the view that the company could again be a takeover target following last year's collapse of its merger arrangement with Tellabs (TLAB 90 5/8 -1/16), the latest acquisition announcement removes some of the speculative assumptions about CIENA being a takeover target. Certainly, the purchase of Lightera and Omnia does not preclude another telecommunications player from making a bid for CIENA. However, it does suggest that there is no one at present waiting in the wings to swoop up CIENA. While being taken out through an acquisition seems to be the easy way out of the corner that CIENA painted itself into when it failed to be awarded a lucrative contract from AT&T (T 82 1/2 +1 1/16) last year and merger deal fell apart, management seems poised to continue to build its product offerings and capitalize on the growing need for high-capacity intelligent optical transport and switching systems. Accordingly, investors should give management credit for not sitting around and waiting for a suitor to appear. While this path may take longer for the share price to rise to prior levels, it certainly beats inaction from management which would eventually lead to market share and significant profit erosions.