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Corning, Nortel end talks
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July 27, 2000: 1:52 p.m. ET
Corning considered buying Nortel's optical components business
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NEW YORK (CNNfn) - Fiber-optic cable maker Corning Inc. said Thursday it ended talks about buying Nortel Networks Corp.'s optical components business, a deal that reportedly could have been worth $100 billion.
Earlier this week, a source close to the situation told CNNfn that the two sides were in talks. Neither Corning nor Nortel, the world's second-largest maker of telecommunications gear, would comment at the time. The Wall Street Journal reported Monday that the two were discussing a deal that could have resulted in Nortel owning 50 percent of Corning and that could have been worth up to $100 billion.
In a brief statement Thursday, Corning said talks had ended with Nortel but did not provide details. "We have and will continue to have a close working relationship with Nortel," Corning Chief Executive Roger Ackerman said in the statement.
Corning (GLW: Research, Estimates) also said it expects sales in its photo technology unit to double this year.
ABN AMRO said Thursday that it raised its rating on Nortel Networks to top pick from buy, saying current price weakness creates a buying opportunity.
"We believe the termination of talks with Corning does not take away from the earnings power or valuation potential of Nortel's optical or overall business," analyst Kenneth Leon said in a research report.
Nortel (NT: Research, Estimates) stock slid 4-1/4 to 79-3/4 while Corning (GLW: Research, Estimates) shares rose 5-7/8 to 264 in� trading Thursday. 
- staff and wire reports
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