Posts tagged 'Alcatel-Lucent'

It’s all about the synergies, just you wait, French M&A edition

Reading that Alcatel-Lucent is to cut 10,000 jobs (with 900 axes to actually fall in France) we found ourselves humming the grand old Duke of York.

We have no comment on the merits of this latest bout of self-help, which actually aims to cut 15,000 jobs and add another 5,000 by 2015. But for context (charts by us, data from Bloomberg): Read more

Snap news

Breaking pre-market news on Friday,

– Anglo American acquires Oppenheimer family’s 40 per cent interest in De Beers for $5.1bn  — statementRead more

Snap news

Breaking pre-market news on Friday,

– Nationwide UK house price index  shows annual house price inflation was positive for first time since March 2008 – statementRead more

Snap news

Breaking pre-market news on Wednesday,

– Alcatel-Lucent launches €750m convertible bond offering – statementRead more

Nokia falls on Nortel news

Investors reacted negatively to the weekend’s news that Nokia Siemens Networks will spend $650m to buy the core operations of Nortel,the Canadian telecoms equipment manufacturer now under bankruptcy court protection. Nokia ’s shares fell 4% in Helsinki and Siemens was 3.4% lower in Germany, as analysts expressed doubts about the move. Nokia’s European rival Alcatel-Lucent also fell 9% on the news after analysts warned the deal would increase competitive pressures on its North American business.

Alcatel-Lucent new chief vows to heal rifts

Ben Verwaayen, the new chief executive of Alcatel-Lucent, pledged he would not “take any prisoners” in his battle to end the cultural and management rivalries that have dogged the Franco-American telecoms equipment supplier since its ill-fated merger two years ago. Verwaayen, who quit three months ago as head of UK group BT, “has a taste for tough nuts”, says Lex. He cracked one, with BT, but can he do it again with Alcatel-Lucent?

Dassault dismisses Thales stake talk

Dassault Aviation on Thursday dashed speculation it could take on the mantle of core French industrial shareholder at Thales, the defence electronics company, by acquiring the 20.8% stake held by troubled telecoms equipment group Alcatel-Lucent. Charles Edelstenne, executive chairman of the civil jet and military aircraft group, insisted the company had no interest in increasing its 5% stake in Thales and said the group’s aim, in fact, was to sell its entire holding. His unambiguous response appeared to close the door on one of the options considered by Nicolas Sarkozy, French president, for restructuring the French defence industry. Alcatel-Lucent’s troubles since its merger just over a year ago had led to speculation that the group would be forced to sell its stake in Thales.

Alcatel-Lucent chiefs to step down

Alcatel-Lucent, the beleaguered telecoms equipment maker, parted company with its chairman and chief executive on Tuesday following its sixth consecutive quarterly loss and a series of profit warnings. Pat Russo, chief executive and Serge Tchuruk, chairman, will stand down within months as part of a broader management shake-up. Russo and Tchuruk were the architects of Alcatel’s takeover of Lucent Technologies in late 2006, producing the world’s largest supplier of telecoms infrastructure. But the combined company has since lost more than half of its value, and on Tuesday reported a Q2 net loss of €1.1bn. Lex notes the stock is now cheap and Tuesday’s Q2 report beat forecasts. “But that does not mean the old guard deserved to stick around to witness a possible turn in fortunes”.

Alcatel in danger of losing AT&T role

Alcatel-Lucent looks set to lose business with AT&T to its arch-rival Ericsson in a fresh blow to the troubled Franco-American telecoms equipment maker. Under the original terms of a $2bn contract awarded by AT&T in 2004 to Ericsson, Lucent and Siemens to supply 3G mobile infrastructure for its US wireless network, Ericsson was to get about $900m, Lucent $700m and Siemens $400m. Alcatel-Lucent has issued three profit warnings since the merger that created it was finalised last December.

Deadline for Alcatel-Lucent’s Russo

The board of Alcatel-Lucent has given Pat Russo, chief executive, one month to present an emergency restructuring plan to her board, as well as to lay out the direction of the group’s research and sales efforts. Ms Russo is also being urged to streamline the telco equipment group’s organisational structure, particularly the executive committee, which has grown top heavy since the merger of equals between Alcatel of France and Lucent of the US. Directors believe this has helped spark the crisis that has led to three profit warnings in less than 10 months.

Alcatel-Lucent plunges 9% as doubts grow

Patricia Russo, the US-born chief executive of Alcatel-Lucent, is coming under pressure from French board members to boost her management team after the telecoms equipment supplier on Thursday issued its third profit warning this year, reports the FT. S&P downgraded Alcatel-Lucent from “buy” to “hold” and cut its estimates for 2007-08  after the company said it expected flat 2007 revenue growth. It had previously expected growth of about 5 per cent. The Wall Street Journal says the warning signalled growing problems for one of the biggest ever trans-Atlantic mergers. Shares in the company dropped nearly 9% on Thursday and the stock is down about 40% from its recent high early this year. Ms Russo blamed the 3Q problems on weak sales to North American wireless customers, and dismissed suggestions the merger was to blame.

Microsoft’s $1.53bn judgment overturned

A $1.53bn award against Microsoft, the biggest patent infringement judgment ever handed down by a jury, was thrown out by the US trial court judge on Monday. Alcatel-Lucent, the French telecoms equipment company that had prevailed in the first round of the case earlier this year, quickly denounced the decision as “shocking and disturbing” and said it planned to appeal. The case stemmed from Microsoft’s use of the MP3 digital music format, and has been seen as having potentially wide-ranging implications for other companies involved in digital media.

CDS report: Poor performance hits Alcatel, Tate & Lyle

Poor operating performance was the cause of two of the biggest moves in the European credit derivatives market this morning as the cost of protection rose on both Alcatel-Lucent, the telecoms equipment company, and the UK’s Tate & Lyle.

The sugar and sweeteners group was forced into a surprise profits warning due to poor sales of its Splenda Sucralose sweetener into the US soft drinks market, news that sent Tate & Lyle’s shares tumbling more than 15 per cent in early trade. Read more