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JDS Uniphase and E-Tek tumble on antitrust inquiry

    JDS Uniphase Corp. (Nasdaq: JDSU) and E-Tek Dynamics Inc. (Nasdaq: ETEK) fell Monday on news that U.S. antitrust officials have asked the companies for more information on their proposed stock swap, which was valued at about $18 billion.

    Ottawa-based JDS, a supplier of components for fiber optic networks, fell 6 3/16 to 114 3/8, or 5 percent and E-Tek , which makes components and modules for fiberoptic systems, dropped 23 1/4 to 212, or 10 percent Monday. JDSU's stock had been on a run since it received bullish coverage from analysts in February.

    The companies received a request on Friday for additional information and other documents on their proposed merger from the antitrust Division of the U.S. Department of Justice under the Hart-Scott-Rodino Antitrust Improvements Act.

    "JDS Uniphase and E-Tek intend to respond promptly and fully to the government requests, which are not unusual in a merger of this size that involves new, rapidly changing and important technologies,'' the companies said in a joint statement.

    JDS and E-Tek said they still expect to complete the merger in the second quarter of this year as indicated on Jan. 17 when they unveiled the plan. JDS will exchange 2.2 shares for each E-Tek share. The ratio was adjusted to reflect a two-for-one stock split on March 10.

    Reuters contributed to this report.


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