Opnext shareholders approve Oclaro merger
Shareholders have approved Opnext's merger with Oclaro.
A proposed merger between optical communications firms Oclaro and Opnext has moved a step closer as shareholders agreed to the deal.
At a meeting yesterday (July 17th), Opnext stockholders approved the plans, thereby passing the last milestone needed to finalise the agreement.
However, there may be a need for more negotiation strategies at Oclaro, as while its shareholders approved a plan to issue Oclaro shares to Opnext stockholders as consideration in the merger, a second proposal to increase the number of authorised shares failed to gain the votes required.
Approval for this is necessary to complete the deal in order for Oclaro to have sufficient shares to deliver to Opnext stockholders.
Therefore, the firm will attempt to solicit the remaining votes it needs ahead of another stockholder meeting scheduled to take place on July 23rd.
However, chairman and chief executive of Oclaro Alain Couder said the integration plans are proceeding on schedule, stating: "We are ready to operate as a single company and look forward to taking our place as the number two global provider of optical components, modules and subsystems."
He had previously urged shareholders to vote in favour of the merger ahead of yesterday's meeting.
Posted by Ken Hayes
Source: Oclaro press release, July 17th