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Lightwave summarized the acquisition of Finisar by II-VI and requested commentary from Cignal AI. Andrew highlighted the uncertain environment and the unique circumstances of the situation.

“I think it is a good deal, provided of course the Chinese approve,” said Andrew Schmitt, founder of Cignal AI, in an email to Lightwave. “Oclaro indicates it still expects the deal to close this year, but if you look at the pricing in the markets, this isn’t the case. I think Oclaro does honestly believe this is the case, but there is a lot of uncertainty right now. II-VI didn’t address these risks in the call this morning because there really isn’t an effective way to quantify this risk. I think a lot of II-VI shareholders don’t want to be part of the ride until some of this uncertainty is resolved, and it will be interesting to see how this risk is reflected in the deal’s timeline and break up penalties.”