E-Tek shares rise on JDS Uniphase merger approval

Shares of communications equipment maker E-Tek Dynamics gained $5.94 to $268 following the finalization of the company's merger with JDS Uniphase.

Shares of JDS Uniphase, a leading maker of fiber-optics communications gear, gained $2.88 to close at $121.88.

E-Tek stockholders approved the previously announced $15 billion merger this morning, completing the final step in the deal, which is expected to close June 30.

"Knowing that this hurdle they had is basically gone, it brings more investors confidence in the companies, and you see a run-up in the stock," said Bijan Saberi, an analyst Sutro & Co. "If one goes up, the other has to go up to compensate. As it gets closer and closer to the merger, the difference between the two prices will narrow."

Once the deal goes through, each outstanding share of E-Tek will be swapped for 2.2 shares of JDS Uniphase. The Justice Department approved the merger June 22.