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JDS Uniphase Up on Lehman Bros. Purchase

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Bloomberg News

JDS Uniphase Corp. (JDSU) jumped 10% on Wednesday after Lehman Bros. Inc. said it’s buying the stock of the world’s biggest maker of parts for fiber-optic communications networks.

The San Jose-based company’s shares leaped $20.75 to close at $235.50 on Nasdaq. The stock has climbed almost tenfold in the last 12 months.

Jeffrey Applegate, Lehman’s chief investment strategist, wrote that the firm is buying JDS Uniphase shares as a shift in its U.S. strategy portfolio. JDS already leads the market for fiber-optic network parts and plans to unveil 30 new products at the Optical Fiber Conference 2000 next month in Baltimore, Applegate wrote.

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Lehman is selling its position in Tellabs Inc. (TLAB) to buy shares of JDS Uniphase, Applegate wrote, partly because of “higher near-term product development expenses and execution risks” for Tellabs. Lisle, Ill.-based Tellabs, the biggest maker of equipment that manages phone-network traffic, slid $2.19 to $53.81 on Nasdaq.

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