MRV Communications Inc. (MRVC)

[kazcul]

NEW YORK, Jan 6 (Reuters) - MRV Communications' (MRVC.O: Quote, Profile, Research) plan to take its optical-equipment business Source Photonics Inc public should unlock the company's "tremendous value," Barron's reported on Sunday.

Last month, Source Photonics filed with U.S. regulators to raise up to $130 million in an initial public offering.

It's a tangible sign MRV "finally is going to force the street to value the separate entities at their respective multiples, which we believe will unlock tremendous value," Leo Saraceno, director of North American equities at Sun Life Financial -- which has nearly 10 million MRV shares -- told Barron's.

Saraceno told Barron's that Source Photonics has a value of $338 million, based on a multiple of 1.5 times 2008 sales, which are estimated to be about $225 million.

Its core network products unit might be worth another $230 million and its third-party network-integration segment is worth $95 million, Saraceno told the weekly newspaper.

Factoring in net cash, MRV could rise to $4.50 a share, Saraceno told Barron's, up from its Friday closing price of $2.11 each. (Reporting by Justin Grant, editing by Martin Golan)