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Tellabs Lowers Bid for Linthicum, Md.-Based Telecom Equipment Firm Ciena Corp..
- Article from:
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Knight Ridder/Tribune Business News
- Article date:
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August 29, 1998
- Author:
- The Washington Times
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Copyright informationCOPYRIGHT 1998 Knight-Ridder/Tribune Business News. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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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 carried on fiber-optic ...