Cisco CEO distances himself from any Ciena purchase
WASHINGTON, Sept 23 (Reuters) - Cisco Systems Inc. (Nasdaq:CSCO - news) Chief Executive Officer John Chambers distanced himself from rumors on Wednesday that his company may purchase Ciena Corp. (Nasdaq:CIEN - news), a telecommunications equipment supplier.
Chambers told a small group of reporters that Ciena has ``a number of serious'' shortfalls, measured against criteria his company uses in deciding whether to acquire other companies.
Chambers ticked off the criteria: A common vision, short-term wins for Cisco after the acquisition, long-term strategic importance, a similarity of chemistry and culture, and geographic proximity.
Nonetheless, Chambers said he has admiration for the CEO of Ciena. Asked by a reporter, he rejected the notion that the rumors were floated merely to help increase the price of the stock.
Shares of Ciena Corp. rose 26 percent on Tuesday as rumors circulated that it might be a takeover target and that Cisco might be a possible buyer.
Cisco is a leader in the manufacture of computer network equipment used on the Internet.
Chambers said that his company looks for companies that will help it achieve its goals as it moves into new areas. And he said what his company purchases is largely the expertise of engineers and others.