... fiber was in a sold out stage and Corning had pre-sold the next 18 months of its entire fiber manufacturing capacity. The demand for Photonics products was also increasing and Corning responded by expanding the capacity for Photonics six fold over the next 18 months. Corning Inc. shares were currently trading at $71.25 which was around 94 times 200 earnings and 75 times projected 2001 earnings compared to an average of 30 times for S&P 500. Lately, Corning was considering acquisition of Pirelli S.P.A.'s 90% interest in Optical Technologies, Pirelli's optical components and devices business. In order to finance the acquisition Corning was issuing $2.7 billion in zero coupon convertible debentures priced at $741.923 per $1000 principal amount. Corning was also conducting a separate public offering of 30 million shares of its common stock at $71.25 a share. Strengths and Weaknesses of the firm Strengths: 1) They own 50% of the optical fiber ...

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