1:15 PM -- Rumors of Avanex Corp. (Nasdaq: AVNX) and Bookham Inc. (Nasdaq: BKHM; London: BHM) reconsidering a merger have been floating around for months now, getting extra juice when Avanex CEO Jo Major was fired. (See Avanex Axes CEO Jo Major.)
Now there's some Securities and Exchange Commission (SEC) evidence to chew on. Morgan Keegan & Company Inc. analyst Paul Bonenfant points out a filing last night that describes changes in executives' agreements with the company; they're given some incentives to stick around should Avanex get acquired by... somebody...
Granted, that might not mean anything. The filing could be routine, or it could be in preparation for a deal that never closes. I'm convinced Avanex and Bookham did, indeed, come close to a deal in 2006, and that didn't work out. (See Will Avanex Hook Bookham?)
Moreover, Bonenfant points out it's not clear how the deal would be structured. Bookham has the larger market capitalization -- about $40 million versus Avanex's $20 million, based on today's massive stock movements -- but their annual revenues aren't that far apart: $250 million for Bookham and $200 million for Avanex.
About those stock prices: It's sometimes hard to tell what moves particular stocks these days, but Avanex and Bookham are definitely moving. Avanex, at this writing, is up a whopping 38 cents (44%!) to $1.24, while Bookham is down 4 cents (9%) at 40 cents.
— Craig Matsumoto, West Coast Editor, Light Reading