While continuing to recommend to shareholders the agreement it signed with Lumentum (NASDAQ:LITE), the board of Coherent, Inc. (NASDAQ: COHR) says it will engage with II-VI Inc. (NASDAQ:IIVI) to explore the offer II-VI has made for the company (see “II-VI trumps Lumentum, MKS Instruments with new bid for Coherent”). II-VI is the third company to bid for control of Coherent, following Lumentum and MKS Instruments (NASDAQ:MKSI). II-VI has offered more money for Coherent than its two competitors.
The Coherent board says the pending discussions are part of its review of the unsolicited bid. The board members add that they are still evaluating the bid from MKS Instruments as well. The Coherent board has not indicated how long the review processes will take.
“Coherent has determined to engage in discussions with II-VI to further evaluate the comparative benefits and risks of II-VI's proposed transaction relative to Coherent's pending transaction with Lumentum, including the near and long-term financial opportunities of each transaction, the expected completion timing of each transaction, and the closing risks associated with each transaction,” the board said via a press release.
Those closing risks include potentially running into objections from regulatory authorities. China’s State Administration for Market Regulation (SAMR) has held up multiple deals, including the merger of II-VI and Finisar as well as the recently consummated Cisco/Acacia Communications combination. II-VI asserts that its product line has fewer redundancies with Coherent’s when compared with those of Lumentum and MKS Instruments, rendering it the safest option.
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Stephen Hardy | Editorial Director and Associate Publisher, Lightwave
Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.
Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.
He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.
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