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Tellabs...

scojones · 2003-01-13 16:33:06

I worked for Tellabs in Shannon last summer, when their stock price stayed around $5. In december they closed the Shannon plant and now their stock price is $9.09 as a result of the Shannon plant closing. I'm new to business principles and whatnot, and i was wondering if they closed the Shannon plant to increase their…

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13-01-2003 5:33pm

#1

scojones

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I worked for Tellabs in Shannon last summer, when their stock price stayed around $5. In december they closed the Shannon plant and now their stock price is $9.09 as a result of the Shannon plant closing. I'm new to business principles and whatnot, and i was wondering if they closed the Shannon plant to increase their stockprice was/is that legal?

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#2 13-01-2003 5:37pm
spongebob

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its legal and seems to have worked for them.

the market expected them to take drastic actions to reduce their cost base in view of current sales levels.

It rewarded them when it perceived that they were doing so by closing both Drogheda and Shannon

By market I mean the NYSE where they are quoted.

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#3 13-01-2003 5:39pm
scojones

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Thanks alot muck!

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