Is Jds Uniphase Bonkers?

Its riskiest--and costliest--buy yet gives investors pause

It's another deal for the record books. On July 10, JDS Uniphase Corp., a maker of esoteric components such as lasers used in fiber-optic networks, with sales of $1.4 billion, agreed to pay a staggering $41 billion in stock for SDL Inc., a rival optical-parts maker, whose 1999 sales were just $187 million.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.