JDS Uniphase May Sell 980 nm Pump Business to Secure SDL Merger
The proposed merger of fiber-optic components manufacturer JDS Uniphase and 980-nm pump laser specialist SDL is currently under consideration by U.S. antitrust authorities. While the deal is expected to get the green light, there are likely to be conditions, the main one revolving around a way to prevent the merged company from cornering the market in 980 nm pumps. It is believed that the combined forces of JDSU and SDL would have about 70-80% of the terrestrial pump laser market and a 90% market share for submarine networks.
Many analysts believe that the most likely solution is for JDS Uniphase to sell off its 980-nm laser manufacturing facility in Zurich, Switzerland. The asking price could be in the $4-7 billion range, and potential buyers include Nortel Networks, Lucent (now Agere), Corning and Furukawa Electric.
Shareholders of SDL and JDSU will vote on the proposed merger on December 27. Due to variations in share prices, the deal is now valued at around $25 billion.
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