Several companies have formally expressed interest in Lucent Technologies Inc.’s fiber-optic unit, but according to Friday’s Wall Street Journal, the rumored sale is probably still weeks away.
Because Lucent wants, and needs, to make as much cash as it can without forking over too much in taxes, an agreement will likely be difficult to reach. Lucent originally hoped to receive $8 billion to $10 billion for its Norcross, Ga.-based Optical Fiber Solutions unit, but considering the rapid devaluation of communications and technology stocks, the unit will likely only garner $4 billion to $6 billion.
The Journal’s unnamed sources said France’s Alcatel SA, Italy’s Pirelli SpA, Japan’s Furukawa Electric Co. and United States’ JDS Uniphase Corp. are among the companies in early stages of negotiations to acquire the Optical Fiber Solutions unit. They added that General Electric Co. is also a potential buyer but appears to be quickly losing interest, and Corning Inc., currently the nation’s largest fiber-cable business, would probably acquire the unit, but regulators present an obstacle. The Journal said that Lucent and the other companies involved in the rumors declined to comment or couldn’t be reached.
At market close Friday afternoon, in the wake of the rumors, shares of Lucent was up 5.2 percent, or 47 cents, trading at $9.51 per share.
In other news, Lucent postponed a bond sale, expected to be valued at about $100 million, that it was conducting on behalf of TeleCorp PCS Inc. The company said it has decided to wait until conditions improve before taking the bonds to market.
