Alcatel-Lucent SA is currently negotiating with some potential buyers such as Unify GmbH & Co. KG, a Gores Group LLC and Siemens AG venture for selling its enterprise business.
The enterprise unit of the company is one of the largest units selling telecommunications equipment and services. It has proved to be quite successful, with its 1-billion-dollar revenue for 2012. One of the people familiar with the issue said that an industrial company not situated in the U.S., as well as a Chinese investor were also attracted by the Alcatels unit.
Such a deal would provide Alcatel-Lucent with the opportunity to become more focused on some more profitable mobile-phone network contacts. This, on the other hand will put the company closer to the goal of generating 1 billion Euro from asset disposals by 2015, which was set by the Chief Executive Officer of Alcatel – Michel Combes. The latter is also currently trying to reduce companys expenses by cutting some jobs, while companys competition of Chinese networking equipment suppliers is becoming more fierce than ever.
On the other hand, Unify is currently trying to become more attractive to new investors, which is the reason why it is preparing to introduce new communication software on the market. The purchase of the Alcatel-Lucent enterprise unit would provide the company with access to a broader customer base. It will also make the company more competitive to Cisco Systems Inc., especially in North Amerika.
One of the spokesmen of Alcatel-Lucent – Simon Poulter, refused to make any comments, so did Amy Martin, who is the spokeswoman of Unify. Siemens and Gores Groups representatives also declined to comment.
Second-round bids are being prepared by the potential buyers, and the possible decision is expected between January and March 2014. According to one of the people familiar with the matter, the enterprise business of Alcatel-Lucent SA, which in 2012 reported an operating loss of 12 million Euro, may be estimated to as much as 250 million Euro.
In December 2013 Alcatel agreed to sell its LGS Innovations unit for 200 million dollars. The LGS Innovations is known for providing the U.S. Government with networking and satellite-communication services. Another part of the enterprise business of the company – the Genesys call-center software unit – was sold in 2011 to Permira Advisers LLP. The deal was estimated to 1.5 billion dollars.
According to Bloomberg, the current share price of Alcatel-Lucent SA is 4.95% up, and its one-year return rate is 182.20% up.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
