Corning Inc. has agreed to buy the fiber-optic division of Italian Pirelli SpA, U.S.-based Optical Technologies Inc., for US$3.9 billion plus other assets for $100 million, Pirelli announced Wednesday.
Optical Technologies, located in Delaware, manufactures optical components and is 90-per cent owned by Pirelli with Cisco Systems Inc. owning the remaining 10 per cent, Pirelli said in a statement.
According to Pirelli, the sale was made to raise capital for its IPO (initial public offering), and is to be finalized in two to three months upon receiving customary Antitrust Authorities approval.
Corning has recently been focusing its strategy on transforming itself into the world’s largest optical-fibre producer and currently enjoys twice the market share of second-place Lucent Technologies Inc.
Corning, headquartered in Corning, New York, can be contacted at http://www.corning.com/. Pirelli, in Milan, Italy, can be contacted at http://www.pirelli.com/. Cisco in San Jose, Calif., can be reached at http://www.cisco.com/.