Free Encyclopedia of Ecommerce » Free Encyclopedia of Ecommerce » Lucent Technologies - Lucent Spun Off From At, Acquisitions And Divestitures Marked 2000, Losses Mounted During 2001

Lucent Technologies - Losses Mounted During 2001

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In March 2001 Lucent announced it was seeking buyers for its fiber and cable business unit, one of its core businesses. At the time Lucent was the second largest producer of optical fiber in the world behind Corning. The unit's revenue grew to nearly $2 billion in 2000. French telecommunications giant Alcatel SA made a bid for the fiber-optic business, then entered into talks with Lucent about a possible merger. At the end of May 2001 The Washington Post reported that Alcatel and Lucent were finalizing an agreement to merge, with Alcatel acquiring Lucent for $32 billion in stock. The next day it was announced that talks had collapsed, reportedly over issues of control. Lucent announced it would proceed with its own turnaround plan, which included laying off 10,000 workers and reducing annual expenses by $2 billion. Lucent subsequently sold its fiber-optic business to Furukawa Electric Co. of Japan for $2.5 billion, with Corning paying an additional $225 million for Lucent's interest in two joint ventures in China.

Lucent Technologies - Lucent's Goal: Return To Profitability [next] [back] Lucent Technologies - Acquisitions And Divestitures Marked 2000

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