BURNING BRIGHT. The $7 billion bidding battle for Coherent has ended, and the laser maker picked the offer with a slightly lower headline value, from II-VI, a laser component maker. It’s a reasonable choice. When multiple suitors are paying above the odds and offering part stock, the quality of the resulting combination matters to the target as well as the buyer. After frenzied bidding, II-VI’s final shot, composed of $220 per share in cash and 0.91 of its shares per Coherent share, was the one that dazzled. Lumentum, which kicked off the bidding in January, walks with a $218 million break fee. One problem faced by Coherent’s board was the bidders’ stock prices swung daily. Some investors may simply have marked down the stock of whichever company was in the lead, making that bid appear less attractive. Moreover, even the early offers looked value destructive. For that reason the loser, Lumentum, may yet turn out to be the winner. (By Robert Cyran)