Tellabs Inc. shares increased 8 percent in early afternoon trading after losing ground in recent weeks on speculation AT&T would switch to cheaper routers from rival Cicso Systems Inc., causing it to lose business.
The company has been hit by volatility since early May in the wake of analyst speculation about AT&T, according to a report by Jim Kelleher, senior analyst for Argus Research Co. The stock fell from $9.12 on May 27 to $6.37 on June 8.
The company denied the speculation on June 10, adding that orders were strong.
On Monday, shares were up 49 cents, or 8 percent, to $6.86. Kelleher said the latest jump is part of a broader rebound in the market.
