US bid for IOC

US bid for IOC
Alex Mayhew-Smith IOC, the manufacturer of 2.5Gbit/s and 10Gbit/s optical modulators, has entered an agreement to be acquired by US firm SDL. The directors of IOC have recommended that shareholders accept the offer of 1.815 SDL shares for every 100 IOC share, valuing IOC at $46m. The Essex-based AIM listed company was first known to be in takeover discussions over a year ago and reported an end of year pre-tax loss of ?2.95m in 1998. The acquisition will expand SDL’s range of optical products to its existing dense wavelength division multiplexing customers, said SDL. IOC recently suffered from the loss of a major order last year, believed to be from US telecoms equipment firm Ciena, on which IOC placed much research investment. Mike Powell, managing director of IOC, said: “The combination of the two companies adds to IOC’s strengths.”


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