Alcatel-Lucent searches for another buyer for its struggling enterprise unit

Alcatel-Lucent (NYSE: ALU) is once again looking for another suitor to purchase its enterprise division as part of a broader goal to cut $1.34 billion in assets, reports Reuters, citing a number of unnamed sources.

Michel Combes, Alcatel-Lucent's CEO, has appointed Lazard Ltd. to seek out potential parties interested in purchasing the unit.

This is the second time since 2011 the vendor has attempted to divest the enterprise division.

After it failed to get a buyer for all of the enterprise business, it finally sold the call center software business Genesys to private equity firm Permira for $1.5 billion in October 2011.

Although Avaya, Mitel Networks Corp and Unify, which was formerly Siemens' Enterprise Communications business, could be potential suitors, sources told Reuters that the pension obligations a buyer would have to absorb make it a hard sell.

The pension obligations that come with the business were one of the key issues that turned buyers off in 2011.

An Alcatel-Lucent spokesman would not comment to Reuters on a potential new sale of the enterprise unit, while Lazard did not respond to requests for comment.

For more:
- Reuters has this article

Related articles:
Alcatel-Lucent's enterprise sale to Permira Advisers falls through
Alcatel-Lucent continues to look at options for its enterprise division
Rumor mill: Siemens, Alcatel-Lucent could make IPO for their enterprise business divisions
Alcatel-Lucent confirms $1.5B deal to sell Genesys unit to Permira
France's FSI could bid on Alcatel-Lucent's submarine cable business


Like this story? Subscribe to FierceTelecom!

The Telecom industry is an ever-changing world where big ideas come along daily. Our subscribers rely on FierceTelecom as their must-read source for the latest news, analysis and data on the intersection of telecom and media. Sign up today to get telecom news and updates delivered to your inbox and read on the go.

Suggested Articles

Thanks to the European and Asia-Pacific regions, global data center switch revenue bounced back in Q3 after two consecutive quarters of declines.

Lumen has teamed up with Itential to boost automation across multi-domain networks for service providers, enterprises and cloud providers.

The Open Networking Foundation's Aether platform, which includes 5G, edge and cloud, has taken flight with a $30 million contract funded by DARPA.