SAN MATEO, Calif. — Shareholders of Oplink Communications Inc. voted yesterday to reject the company's acquisition of Avanex Corp. As a result, Oplink has terminated the deal.
Announced in March, the merger would have created a vertically integrated company, pairing Oplink's optical components with Avanex's subsystems business.
Each company had begun nosing into the other's market, making a merger seem like a logical choice. At the time, officials on both sides said the combined company's market capitalization would be $610 million.
Oplink officials were not immediately available for comment.
Shareholders' opinions might have been swayed by a letter from Zhimin Liu, a former Oplink senior fellow. In documents filed with the Securities and Exchange Commission, Liu expressed concern about "severe adverse developments" at Avanex since the merger announcement.
Specifically, Liu noted that Avanex chief technical officer Simon Cao had left the company and vacated his board seat on June 30 and that Avanex had been sued on May 31 by Hon Hai Precision Industry Inc. for more than $40 million.
Given Avanex's new situation, Liu thought the acquisition was too risky for Oplink. According to Liu, Oplink shareholders would own 50 percent of the combined company, but Oplink would contribute 77 percent of the gross profits for calendar 2002.
According to his letter, Liu owns 3 million shares of Oplink stock. He had been chief executive officer of Telelight Communications Inc. when that company was acquired by Oplink in April 2000. He stayed on as Oplink senior fellow until October 2001.
Oplink has scheduled a conference call on Aug. 20 at 5:00 p.m. Eastern time to discuss the scuttled merger.
RSS
Digital
10 emerging technologies to watch:
EE Times has compiled a list of emerging technologies that we think will be worth watching out for in 2010. Biofeedback or thought-control of electronics are among the contenders.
Hot applications in 2010:
We've compiled a list of 10 technology applications you should watch for in 2010, ranging from e-book readers to 3-D TVs. We examine the features that make these apps so compelling as well unresolved issues.
Top 25 predictions for semis in 2010:
2010 is just beginning to unfold in the electronics industry. Looking into our crystal ball, we have released our own chip forecasts--and other predictions--for 2010.
Seven things to fix in 2010:
The editors of EE Times came up with their own informal list of things we hope engineers fix in 2010, spanning everything from nano-lithography to space travel. What do you want to see get done this year?
'09 moves that are shaping the future:
This was a brutal year, but the industry gets a nod for showing grace under fire. Here's our Top 10 guide to the coming year, illustrating what to expect in 2010.
10 CEOs out in 2009:
It's been a tough year for the global electronics industry and CEOs. We survey the dismissal of 10 industry CEOs during the first three quarters of 2009 and what's ahead for the rest of the year.
Notable women in microelectronics:
There is no better time than a global economic recession to examine the keys to successful corporate governance. So, EE Times has compiled an international list that celebrates women who are business and technology leaders in semis.
EE Times updates Silicon 60:
Seventeen companies have been added to the lastest version of our Silicon 60 list of emerging startups. Forty-three companies survived as emerging companies that are still worth watching.
RSS| 
Digital| 
Mobile
