Ciena shares posted a modest 5.6% rise today as investors reacted positively to the news that Nortel is extending the bidding deadline for its optical and ethernet business to Nov. 20.
Ciena has made a “stalking horse” bid of $511-million ($390-million in cash and 10 million shares) for the business. Nortel apparently wants more time before holding an auction to see if other parties will enter into the fray.
Some analysts believe that if no other buyers come to the table, Ciena will avoid having to raise additional financing.
saw the results announced externally and very quietly. there is no update on the website. how bad can this company get. what the heck are they paying all those marketing, investor relations and PR folks for? looks like business tanked 30% for MEN from last year.
scalppeeler
I am actually surprised they are doing as well as they are doing all things considered. The Chapter 11, the months of stalling to sell good lines of business, the uncertainty and hesitancy of customers understandably so to purchase not because of quality of the product but due to the questions about where the business will end up. It is a no brainer everything is down quarter to quarter but you'll be hard pressed to find a business where things have not gone down in telecommunications. I am surprised the lines of business have not gone down much more drastically than they have. Not making excuses but we still are in an economic downturn if not stabilized downturn. Funny timing though, first the delay of the auction, then expected bad results. I am sure nobody was expecting an increase year to year.
scalppeeler
I guess the only true way to see how MEN is doing relatively speaking is to compare Nortel MEN Q3 results to other similar organization Q3 results excluding the Chinese YoY. That might be a better indicator of how the optical market is doing at this moment in time.
Auction Delay Buoys Ciena Shares
Ciena shares posted a modest 5.6% rise today as investors reacted positively to the news that Nortel is extending the bidding deadline for its optical and ethernet business to Nov. 20.
Ciena has made a “stalking horse” bid of $511-million ($390-million in cash and 10 million shares) for the business. Nortel apparently wants more time before holding an auction to see if other parties will enter into the fray.
Some analysts believe that if no other buyers come to the table, Ciena will avoid having to raise additional financing.