" writeme += "

" writeme += "" writeme += "" writeme += "" writeme += "

" playme.document.write(writeme); playme.document.close(); if((navigator.appName == "Netscape") && (navigator.appVersion.substring(0,1) >= "3")) {playme.focus();} if((navigator.appName == "Microsoft Internet Explorer") && (navigator.appVersion.substring(0,1) >= "4")) {playme.focus();} if (playme.opener == null) { playme.opener = self; } } function play(vid,neth,netl,realh,reall) { var cm=GetCookie("playbar"); if (cm != null) { //if (cm=="nh" && neth=="t") { cm="hi.asx"; //if(aol||nstr||iebug) { //} else { // showvid('asf',vid+cm); //} } else { if (cm=="nh" && neth!="t") { this.sec=1; pbw(vid,neth,netl,realh,reall); } } if (cm=="nl" && netl=="t") { cm="lo.asx"; //if(aol||nstr||iebug) { //} else { // showvid('asf',vid+cm); //} } else { if (cm=="nl" && netl!="t") { this.sec=1; pbw(vid,neth,netl,realh,reall); } } if (cm=="rh" && realh=="t") { cm="hi.rmm"; if(aol||iebug) { } else { showvid('rm',vid+cm); } } else { if (cm=="rh" && realh!="t") { this.sec=2; pbw(vid,neth,netl,realh,reall); } } if (cm=="rl" && reall=="t") { cm="lo.rmm"; if(aol||iebug) { } else { showvid('rm',vid+cm); } } else { if (cm=="rl" && reall!="t") { this.sec=2; pbw(vid,neth,netl,realh,reall); } } } window.onerror = MSIE; // -->

logo
Mon, Jun 12, 2000
Register today for a free financial forecast
real time quotes your portfolio registration help
biz bulletin
  Corporate
Financial
Healthcare
Technology
stocks
  Quotes
Top Performers
Screening
Interactive
Charting
funds
  Quotes
Top Perfomers
Screening
insider
  Stock of the Day
Tip of the Day
Periscope
Launch Live Ticker
Fox News Home

Indices Chart
Click on index
for more information
Lucent to Spin Off Three Businesses
Reuters
MURRAY HILL, N.J. — Lucent Technologies Inc. on Wednesday said it would spin off three slower-growing businesses, forming an $8 billion independent company, as it moves to focus on its fastest-growing operations following a recent earnings letdown.

Lucent, the world's largest maker of telecommunications equipment, said the spin-off would include its company switchboard, or PBX, operations; Systimax, which makes cabling systems for corporate campuses; and its local-area network, or LAN-based, data business.

The new company, to be named later, will start out with $8 billion in annual revenues and a client list chock full of the largest U.S. companies, Lucent said.

Lucent named its chief financial officer, Don Peterson, as chief executive officer of the new company, and its former chairman and current board member, Henry Schacht, as chairman of the spin-off.

"By spinning off our PBX, Systimax cabling and LAN-based data businesses, we are sharpening Lucent's focus and creating another leading company to serve business customers," Lucent Chairman and Chief Executive Richard McGinn said.

A spin-off or divestiture of the slower-growing operations had been expected; Lucent has been under pressure to return to high growth after stumbling in the first quarter with a lower profit and flat revenues.

The new company, with 34,000 employees worldwide, is expected to record a one-time charge for restructuring purposes, Lucent said. More details on the charge and restructuring were not immediately available.

Shares of Lucent, the most widely held U.S. stock, closed Tuesday at 59-1/2 on the New York Stock Exchange, but in pre-open trading on Wednesday they were up 5-1/4 at 64-3/4.

More Marketwire More MarketWire News Top of Page


© 2000, News Digital Media, Inc. d/b/a Fox News Online
All rights reserved. Fox News is a registered trademark of 20th Century Fox Film Corp.
Data from Thomson Financial Interactive is subject to the following Privacy Statement

© 2000 Associated Press. All rights reserved.
This material may not be published, broadcast, rewritten, or redistributed.
© 2000 Reuters Ltd. All rights reserved