Article: Tellabs Lowers Bid for Linthicum, Md.-Based Telecom Equipment Firm Ciena Corp..

Knight Ridder/Tribune Business News

Aug. 29--Tellabs Inc. lowered its purchase price of Linthicum, Md.-based Ciena Corp. to $4.9 billion yesterday in the wake of Ciena's dramatic stock plunge last week that threatened the merger.

Under the terms of the amended agreement, each Ciena common share will be exchanged for 0.8 shares of Tellabs common stock. The earlier deal called for a one-to-one stock swap that valued Ciena at $7.1 billion.

Ciena's shares dropped 44 percent on Aug. 21 after AT&T Corp. said it decided not to buy any Ciena telephone equipment in the near future. Ciena makes equipment that boosts the amount of telephone traffic that can be ...

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