Elastic Networks Climbs After Signing Merger Deal

Elastic Networks

(ELAS)

was climbing in trading before the bell following an announcement that the company will be acquired by

Paradyne Networks

(PDYN)

.

Shares of Elastic were climbing 35%, but that still puts the company's stock price at only 81 cents. Paradyne will exchange stock for the target company.

The deal values Elastic at about 86 cents a share, based on Paradyne's closing price Thursday. The total value of the transaction is about $28.8 million. The companies expect to close the deal in the first quarter of 2002.

Elastic's largest shareholder is

Nortel

(NT)

.