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Alcatel (ALU) Said to Be Front-Runner in Large 4G Expansion Project in Spain

February 17, 2012 1:56 PM EST
ALU Hot Sheet
Overall Analyst Rating:
    NEUTRAL (= Flat)
Alcatel-Lucent (NYSE: ALU) is higher Friday following reports it might be selected for a huge network expansion in Spain.

According to Bloomberg, Telefonica SA (NYSE: TEF) is looking to win back wireless customers in Spain and it wants Alcatel to help it get there. Alcatel is the front-runner in a bid to supply Telefonica with long-term evolution (LTE) equipment for the expansion.

Telefonica is expected to make an announcement at the Mobile World Congress in Barcelona next moth, notes Bloomberg, citing people familiar with the matter.

It's not clear what the total value of the contract would be. Last September, Telefonica said Alcatel would help set-up test networks in Barcelona and Madrid, so this might be further solidification of that initial agreement.

Friday afternoon, Alcatel shares are up 5.3 percent.


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