Stock to Watch

Revived takeover rumors revived Ciena Corp.’s stock--at least for one day. Shares in the maker of equipment to boost the capacity of phone networks surged $3.19 to close at $15.44 as Thursday’s most active issue. Phone-equipment maker Tellabs Inc. scrapped its planned acquisition last month after Ciena lost contracts and issued a profit warning. Linthicum, Md.-based Ciena’s stock has plunged since Tellabs’ June bid, but Tellabs’ chief executive said last week another offer is possible. Ciena’s wave division multiplexers, or WDMs, split light beams on fiber-optic cables into many colors, allowing one strand of fiber to carry more information. The WDM market is expected to grow 60% annually to $10 billion by 2001. “It’s the direction that networks are headed in,” one analyst said.