Another Tellabs Buyout Rumor

This should be good news for this stock. Nortel may be trying to buy them out.

The Toronto telecom equipment supplier is considering a
cash-and-stock offer for Tellabs, according to a source familiar with the
discussion. A takeover price of $14 to $15 a share from Nortel was reported
Thursday by Light Reading, a networking industry publication.

The stock is also trading in the mid-10's so this would be quite a nice bid if they do the deal. However Nokia and Siemens were thinking of jumping in for $16-$17 a share on the deal last month so the spread dropped a little. Some options players think a deal is eminent because they bought about 16000 At or Near the money calls from the Sept. through the Dec. series. Almost no puts traded today as well.