Is JDS Uniphase A Takeover Target? (JDSU)
November 09, 2009 5:04 PM
Once upon a time, JDS Uniphase (Nasdaq: JDSU) was a $100 stock, but that was a long time and today the shares languish below $7.
Still, there was some robust options trade in JDSU today as speculation swirls the company may be a takeover target. More than 20,000 calls traded today with 18,000 of those coming in December strikes and 15,500 of those trading at the December 8 strike. Implied volatility soared to 47% from 4%.
JDSU has cash and short-term investments are listed as a combined $648.6 million, with restricted cash at another $24.5 million and long-term investments adding another $13.6 million. Assets total $1.67 billion, well above JDSU's market cap of $1.51 billion.
Press reports that mentioned a possible takeover didn't idnentify potential suitors, though its reasonable to surmise a fair premium would have to be offered to acquire JDSU, which makes networking gear.
