Share prices for Carrier Access Corp. (NASDAQ: CACS) spiked this afternoon on the rumors that Tellabs Inc. (NASDAQ: TLAB) is close to buying out the communication access technology provider, rising 12.44 percent to $5.06 a share after two days of hovering around $4.60 a share.
The buzz started after Phil Harvey and Raymond McConville first broke the story on Internet news site www.lightreading.com , saying that “sources close to both firms” had told the site that “the two firms have been in talks for a while.”
“The offer price, according to just one of our two sources, is ‘close to $7 a share’, which is slightly above what Huawei Technologies Co. Ltd. was rumored to have put out there in a letter of intent sent to Carrier Access last month,” the article stated.
The article also intimated that Tellabs is purchasing Carrier Access because it represents a way for Tellabs to develop its own gateway technology, which “doesn’t have all the features you want,” according to Gabriel Brown, chief analyst for the Unstrung Insider Web site and one of the main voices quoted in the article.
Aviana Nikiteas, senior manager of Public Relations for Tellabs, said her company could not make any comments on market speculation. Carrier Access did not return calls made to their office.
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