Alcatel-Lucent Said in Financing Talks With Goldman Sachs |
| Bloomberg - Nov 22, 2012 |
Alcatel-Lucent SA (ALU) is in talks with Goldman Sachs Group Inc. (GS) about obtaining a loan to strengthen the unprofitable network equipment vendor’s balance sheet, according to people familiar with the situation.
Under terms still being discussed, the New York-based investment bank would grant Alcatel-Lucent funding of an undisclosed amount, while the Paris-based firm would offer some of its assets as collateral, said the people, who asked not to be named because the deal isn’t final.
Alcatel-Lucent shares closed 16 percent higher at 93 euro cents in Paris, the biggest increase since February 2011, after surging as much as 19 percent earlier.
Mounting losses and a steady cash burn have pushed Chief Executive Officer Ben Verwaayen, heading into his sixth year as chief executive officer, to explore options ranging from asset and patents sales to asset-backed financing.
Sales of assets, such as a division that manufactures undersea fiber-optic cables, and Alcatel-Lucent’s so-called enterprise unit, which provides equipment to businesses, are also being explored, people familiar with the matter said.
Read Full Article from Bloomberg
- Posted: 2012-11-22 15:06:34
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