Oplink's Optical Communication deal done |
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Wed, 06 Jun 2007 15:23
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NEW YORK (AP) - Fiber optic company Oplink Communications Inc., which completed its purchase of a majority stake in rival Optical Communication Products Inc., said Wednesday it agreed to buy the rest of the company.The company previously announced plans to buy Furukawa Electric Co. Ltd.'s 58.1 percent stake in Optical Communication for $1.50 per share in cash and stock.Fremont, Calif.-based Oplink said it will pay $1.65 per share in cash for the remaining 41.9 percent stake in Optical Communication, which is headquartered in Woodland Hills, Calif. Oplink is paying a 10.7 percent premium over Tuesday's closing price to acquire the Optical Communication shares not previously owned by Furukawa. Oplink originally offered $1.50 for each of those shares when it agreed to buy Furukawa's stake in April.The combined value of the two deals is about $177.7 million.Oplink said the acquisition would broaden its product portfolio and would benefit combined customers including Nortel Networks Corp., Cisco Systems Inc., Alcatel-Lucent, Tellabs Inc. and Huawei Technologies Co. Ltd.Shares of Oplink fell 13 cents to $17.21 in morning trading. Optical Communication shares rose 9 cents, or 6 percent, to $1.58. In the last 52 weeks, Optical Communication stock has ranged from $1.31 to $2.47.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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