Marlin Equity Partners is acquiring Tellabs (TLAB) for $2.45/share in cash, or $891M. The price represents just a 4.3% premium to Tellabs' Friday close. The deal is expected to close in Q4. (PR)
Tellabs +5.1% premarket to $2.47; some investors are betting on a higher bid arriving. Tellabs activist investor Dialectic Capital and co-founder Michael Birck back the deal. It follows years of telecom equipment share losses, as well as recent management upheaval and tragedy.
Tellabs (TLAB) names Larry Rieger, a partner at accounting/consulting firm Crowe Horwath, its acting CFO. Rieger replaces Tom Minichiello, who has left to become the CFO of Westell. Also, Tellabs has named finance director Michael Miles its new chief accounting officer. The telecom equipment vendor has been wracked by executive turmoil and tragedy. (PR)
Tellabs (TLAB) interim CFO Tom Minichiello is leaving to become the CFO of Westell (WSTL), effective July 12. Minichiello, formerly Tellabs' chief accounting officer, became acting CFO in May, after Andrew Szafran resigned the position for "personal reasons." The resignation comes two months after former chairman/co-founder Michael Birck retired after disclosing he has leukemia, and less than a year after former CEO Rob Pullen died of cancer. (PR)
Tellabs (TLAB -6.9%) dove yet again after disclosing CFO Andrew Szafran has resigned for "personal reasons." Chief accounting officer Tom Minichiello will serve as interim CFO. The struggling telecom equipment vendor is already dealing with chairman and CEO transitions. (PR)
Tellabs (TLAB) names director Vincent Tobkin, a former director at consulting firm Bain & Co., its new chairman. He takes over from co-founder Michael Birck, who announced plans to retire last August, and does so at a time when Tellabs trades near multi-year lows following years of telecom equipment share losses. (PR) (shareholder meeting transcript)
Though many telecom equipment names have performed well lately thanks to good earnings reports and capex optimism, Tellabs (TLAB -7.7%) made new multi-year lows thanks to mixed Q4 results and guidance for Q1 revenue of $205M-$220M, below a $241.6M consensus. Gross margin is expected to fall to ~34% from Q4's 42.2%. Tellabs has been steadily losing share, and has also seen a CEO transition. The Data segment (switches/routers) saw a 48% Y/Y sales drop - in response, Tellabs says it's discontinuing its 9200 edge router, and will cut 300 jobs as a result. (transcript)