Alcatel-Lucent has launched a $1.4 billion offer in convertible bonds, which will be used to pay off the $1.75 billion on the company's senior secured credit facility in the U.S. as part of its Shift Plan.
The CEOs of Orange and Alcatel-Lucent continue to call for greater consolidation on the French market--a move they say would provide a more level playing field for the market's mobile operators.
Alcatel-Lucent is in talks to sell its cybersecurity unit to Thales as part of what it says is a broader partnership to address network security opportunities.
Alcatel-Lucent sharply cut its losses in the first quarter and its adjusted operating income beat analyst expectations, but sales dipped year-over-year in the United States, its largest market by far.
Alcatel-Lucent continued to show an improvement in its operating performance after the equipment manufacturer reported its group net loss fell by almost 80 per cent to €73 million ($101 million) in the first quarter of 2014, from €353 million a year previously.
Alcatel-Lucent posted its first quarterly net profit in two years in the fourth quarter of 2013, and said its turnaround under the "Shift" plan led by CEO Michel Combes is on target. In the fourth quarter the vendor's North American sales inched up and the company's overall margins widened.
Alcatel-Lucent said it will cut fewer jobs in France than originally planned, indicating that the US-Franco equipment manufacturer and the country's mobile operators have been influenced by pressure from the French government.
The Alcatel-Lucent rumour mill continues to grind as 2014 gets underway, with a new report saying the equipment manufacturer is in talks with potential buyers on the sale of its enterprise unit.
As another year comes towards its end, it would be remiss of me to not to look back at what has been an incredibly eventful year in European telecoms in order to highlight some of the main trends that have not only emerged in the past 12 months, but also look set to dominate the market in the coming year and beyond.
As was widely anticipated, Alcatel-Lucent is to rejoin the French blue-chip index CAC 40 on Dec. 23 in a move that reflects the continuing recovery of the telecoms equipment manufacturer after several torrid years.