Corning Buys Siemens' Optical Cable

Positioning itself to be a leading supplier into the "optical layer," Corning Inc. (Corning, NY) today signed a definitive agreement to acquire Munich, Germany-based Siemens AG's worldwide optical cable and hardware businesses, and the remaining 50% of its two co-investments with Siemens—Corning Cable Systems Corp. and Siecor GmbH—for $1.4 billion, including $120 million of assumed debt.

In addition to the ownership in Siecor Corp. and Siecor GmbH, Corning has acquired Siemens' Communications Cables Division, RXS Kabel Garnituren GmbH and Norddeutsche Seekabelwerke GmbH in Germany; RXS Morel in France, Teleco Cavi in Italy; and Siemens Fiber Optical Kablolari in Turkey. Corning also is acquiring certain related Siemens assets in Argentina, Australia and the United States. The company said it plans to fund the deal with proceeds from both a common stock offering and debt issuance and expects the deal to close in early 2000 after customary regulatory approvals.

As part of the integration of the acquired operations, Corning said it will create a new operating unit, Corning Communications Europe, to be headquartered in London. Corning also announced that Siecor GmbH will become part of Corning's worldwide optical-fiber manufacturing operations.