Alcatel-Lucent Looking at a Sale of its Enterprise Business
Published on: 15th Jan 2014
Note -- this news article is more than a year old.
Alcatel Lucent is reportedly in talks with possible buyers for its enterprise business. The enterprise unit sells telecommunications equipment and services and in 2012 had revenues of USD1 billion, although it is understood to have posted an operating loss of EUR12 million.
Citing three people familiar with the matter, Bloomberg News reported that the possible buyers of the division include Unify -- a Gores Group and Siemens joint venture, an unnamed Chinese investor and an unnamed industrial company from "outside the USA".
The division could raise around EUR250 million for the company which is in the midst of ongoing restructuring to refocus on fewer key products and services.
A sale could be announced by March, and potential buyers are said to be preparing their second round of bids.
"The sale of its enterprise business would, we believe, help Alcatel incrementally strengthen its balance sheet," Franklin Jarman and Karl Blunden, credit analysts at Goldman Sachs Group said in a note. "We see the potential for more transformational transactions in future quarters."
On the web: Bloomberg News