Ciena Re-Prices Employee Stock Options

Ciena Corp. said its board repriced employee stock options to $12.38 a share, days after plans for Tellabs Inc. to acquire the firm were called off because of the company’s woes. Shares in Linthicum, Md.-based Ciena, the No. 1 maker of equipment that boosts phone network capacity, have fallen 87% since July. Effective immediately, the repricing applies to all employee stock options with an exercise price above $12.38, Ciena’s Wednesday closing price. “We think the option repricing is a critical element in helping us retain our team, which is an important step toward maintaining and enhancing shareholder value over the long term,” said Chief Executive Patrick Nettles. Options held by company executives, which were granted before Ciena’s initial public offering last February, are not affected by the repricing. Ciena shares fell 56 cents to close at $11.81 on Nasdaq.