Lucent Lower After Bid for Stake

Lucent Technologies (NYSE: LU) was down 43U.S. cents at $14.93 Monday morning after the company said it received an”unsolicited mini-tender offer” for up to 300,000 common shares.

The Murray Hill, New Jersey-based telecom equipment company said New WorldLiquidity Fund offered to buy up to 300,000 Lucent common shares forUS$10.75 each. The announcement came after the close of trading on Friday.

Lucent said it is recommending shareholders reject the offer because it isbelow the stock’s current trading price, and because New World LiquidityFund “has provided little information about itself and no information aboutits ability to pay for the shares tendered.”

In addition, Lucent said, it is unclear what would happen if the offeris oversubscribed, and Lucent, which “has no relationship with New WorldLiquidity Fund” was never “formally notified” by the fund about the offer.

Lucent said that because the offer is not being made for more than 5 percentof its securities, it is not subject to all the filing, disclosure andprocedural requirements required for larger bids.

On Monday, Lucent said it won a contract from Verizon Communications (NYSE:VZ) to supply optical systems, software and services for a high-speedbroadband telecommunications network linking the United States with majorcities in Europe, Asia and Latin America. Terms of the agreement are stillbeing negotiated, Lucent said.

Lucent shares fell Friday on reports the U.S. Securities and Exchange Commissionis looking into the company’s accounting, particularly the misstatement of revenue booked in the fourth fiscal quarter. Lucent had said in November that the revenue statement was in error.

Leave a Comment

Please sign in to post or reply to a comment. New users create a free account.

E-Commerce Times Channels