Corning to Purchase Cisco Stake in Pirelli

CORNING, N.Y., Oct. 30 -- Cisco Systems Inc. has decided to trade its remaining 10 percent stake in Pirelli SpA's optical components and devices business for shares of Corning Inc.'s common stock. Corning already purchased 90 percent of Pirelli's optical components business in September for $3.6 billion in cash, with the condition that Cisco Systems have the right to sell its 10 percent stake the business if it chose to do so.
Pirelli's optical components business is based in Milan, Italy where it manufactures lithium niobate modulators, pump lasers, certain specialty fibers and fiber gratings that are used in optical networks. The transaction will be complete before 2001, Corning said. Corning manufactures optical fiber, cable and photonics products for the telecommunications industry.