Posts
The above tables show the straddles for Ciena for October and November, computed with our straddles tool.
Why Ciena straddles? Because Ciena (CIEN) has just issued a press release saying it is in advanced negotiations to buy Nortel's Optical/metro division. Ciena will enter the Stalking Horse agreement at any time now. If the price paid is too high, expect the company's stock to suffer. expectation are for the division to go for anywhere between $700M and $1.3B as a final post-auction price.
"Ciena® Corporation (NASDAQ: CIEN), the network specialist, today confirmed that it is in advanced discussions to acquire substantially all of the optical networking and carrier Ethernet assets of Nortel’s Metro Ethernet Networks (MEN) business. The outcome of these discussions is uncertain and subject to negotiation of definitive agreements. Any agreements would be subject to a competitive bidding process under the United States Bankruptcy Code and the Canadian Companies' Creditors Arrangement Act."
UPDATE OCT 6:
The following PR was on Ciena's web site Oct 2, however, some glitches have occured in the transaction and it has not yet been made official:
"Ciena Signs Agreements to Purchase Optical and Carrier Ethernet Assets of Nortel’s Metro Ethernet Networks Business
Proposed combination is unique opportunity to accelerate Ciena’s strategy by bringing together complementary, leading switching and transport technologies
Linthicum, MD — 10/02/2009
Ciena® Corporation (NASDAQ: CIEN), the network specialist, today announced that it has entered into agreements with Nortel to purchase substantially all of the optical networking and carrier Ethernet assets of Nortel’s Metro Ethernet Networks (MEN) business for $400 million in cash and 10 million shares of Ciena common stock. The product and technology assets to be acquired include Nortel’slong-haul optical transport portfolio; metro optical Ethernet switching and transport solutions; Ethernet transport, aggregation and switching technology; multiservice SONET/SDH product families; and network management software products."
Proposed combination is unique opportunity to accelerate Ciena’s strategy by bringing together complementary, leading switching and transport technologies
Linthicum, MD — 10/02/2009
Ciena® Corporation (NASDAQ: CIEN), the network specialist, today announced that it has entered into agreements with Nortel to purchase substantially all of the optical networking and carrier Ethernet assets of Nortel’s Metro Ethernet Networks (MEN) business for $400 million in cash and 10 million shares of Ciena common stock. The product and technology assets to be acquired include Nortel’slong-haul optical transport portfolio; metro optical Ethernet switching and transport solutions; Ethernet transport, aggregation and switching technology; multiservice SONET/SDH product families; and network management software products."
Please do your own due dilligence.
No comments:
Post a Comment