Alcatel-Lucent to leverage core assets for some cash
The salad days for many telecom gear companies are long gone. Alcatel-Lucent is in the same boat unfortunately. Its share price has evaporated from highs in the €80-range ten years ago to about €0.88 today. The only things valuable in the company are its holdings. Alcatel-Lucent makes a wide range of industrial communications switch-gear, including much of the infrastructure that is used in wireless communications today. On top of that, the company makes a wide range of mobile feature phones and mid-range Android smartphones.
Oddly, one of the options being considered might be issuing more stock, though that is not likely since it is currently trading at about a dollar. Other options that may be on the table are outright liquidation of assets, some of which are worth more than the market capitalization of the company itself. Unfortunately, if the company cannot restructure, change its course, and then fall into bankruptcy, those leveraged assets are already gone.
One other option that may be considered is to start licensing some of the 28,000 patents held at Bell Labs in lieu of backing loans against the historical business.
source: The Wall Street Journal
1. MC1123 posted on 06 Dec 2012, 23:55 0 0
is this the same company that makes the alcatel phone?
if they are, why is it that they dont have that beautiful phone? since paris is known to be a fashion city?
3. J1919 posted on 07 Dec 2012, 01:39 0 0
"Alcatel-Lucent makes a wide range of industrial communications switch-gear, including much of the infrastructure that is used in wireless communications today. On top of that, the company makes a wide range of mobile feature phones and mid-range Android smartphones."
4. smallworld posted on 07 Dec 2012, 02:43 0 0
NO, TLC (China) are making the phones, they are just using the Alcatel brand. Alcatel-Lucent no longer make phones.
2. p0rkguy posted on 07 Dec 2012, 00:57 0 0
This better not affect Sprint's LTE roll out along the east coast.
5. Reluctant_Human posted on 07 Dec 2012, 08:58 0 0
I doubt it. This wouldn't affect alcatel-lucent's current customers besides there's always Motorola, Ericson etc that makes equipment for the carriers.
6. frmrVZguy posted on 07 Dec 2012, 09:45 0 0
SPRINT and SOFTBANK both use A-LU network eqt & software. SOFTBANK recently purchased and is installing the latest A-LU software in Japan and so did LG in Korea. So plan on that roll-out here too. The "Silver Lining" to the story is that with the shifting FOREX back to a more level exchange between USA and EURO means that all european products and services become more attractive price-wise. The next 6 months will tell ... assuming the SOFTBANK purchase of SPRINT is approved. Goldman Sachs is there to help get over this 'bump' but evey bit of FOREX change improves the company valuation.
8. lsutigers posted on 08 Dec 2012, 10:14 0 0
Sprint is using Alcatel Lucent, Samsung and Ericsson for it's Network Vision initiative. Ericsson is coordinating the entire operation with the other suppliers while Sprint is overseeing the whole project. Should ALU not be able to support the project it may be Motorola or Ericsson (if they have the capacity) taking over.