The ratio of 0.4 would not dillute TLAB earnings too much and seems about right.
In my opinion CIEN better take the offer.
$54 * 0.4 = $21.6
$21 dollars a share is a hell of a lot better than the $13 dollars a share that CIEN is tradeing at today.
I hope the CEO of CIEN is smart and will take the 0.4 offer and not try and hold out for more. CIEN is really a $20 dollar company right now, not a $30 dollar company. (Unless they have some big contracts they aren't telling the rest of us about.)
I sure am glad you aren't running the show. "$21 ....Ciena better take the offer" Give me a friggin break. Here are some reasons why this stock will be at $40 within the first quarter of next year without a BS BUYOUT...
As has been posted on this board previously, Sprint is testing Ciena's 96 window DWDM. With there plans for ION they will be buying the shit out of the 96 DWDM.
Worldcomm/MCI loves the Ciena equipment and had temporarily held off the purchase of Ciena equipment probably because they wanted to see what there needs would be once acquiring MCI's fiber.
Let's not forget all of the local telephone and foreign telecom companies that will be buying DWDM equipment very shortly.
Ciena is 1 - 2 years ahead of Lucent(AT&T's puppet) and there upcoming 16 window DWDM.
When the big boys (Worldcomm/MCI, Sprint, BellSouth, BellAtlantic & NIPPON Telephone) order DWDM they are going to buy from the leader. Unless the big boys Directors' still have half of their pensions tied up in the 16 window company. So let AT&T buy the 16 window then they can upgrade that again next year. Ciena will do just fine without them.
As far as all you IDIOTS that keep posting "Merger Tomorrow" get a f_cking clue, you sound like a broken record. Go back and read all the posts for the last 3 months, every day there is at least one IDIOT that has posted "Merger Tomorrow"
There will be no consideration of a merger until Ciena's stock gets to at least $30
Just sit tight and watch the stock rise as each contract is announced.
Case 1) A strong move (e.g. +$2), means 4Q was good and CIENA won't look back, buy into the regular closing 30min selloff.
Case 2) No movement and the quarter is as bad or worse than expected and stock will head lower making the latter half of the following week a good buying opportunity (<11). Expect Ciena to have good contract or product news to go along with its 4Q revenue pre-announcement on 11/16 or 4Q report on 12/10.
Case 3) Moves strongly lower on no news, look out. That means the quarter was bad and there is no good news to soften it. Ciena will head back below 9 after 4Q revenue is released, and will have no chance to recover until 4Q earnings are released.