UPDATE: Alcatel (ALU) Submarine Cable Unit Attracts Interest; Advisor Hired for Other Sales
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(Updated - January 14, 2013 12:25 PM EST)
Alcatel-Lucent (NYSE: ALU) may be getting some much-needed attention for one of its business units as the company continues looking for ways to streamline operations and move into profitability.
Reports have private equity funds like Permira Advisers, PAI Partners, and FSI -- a French sovereign fund -- all looking to place bids for Alcatel's submarine-cable business. The unit might bring in as much as €800 million (about $1.1 billion).
In entering a new $2.1 billion financing arrangement with Goldman Sachs and Credit Suisse last month, one of the caveats Alcatel faced was divesting some certain assets. The firm is looking to raise cash as $3 billion in bonds will start coming due in 2015.
The unit would be attractive given the large, 40 percent market share in the segment, not to mention that it is still a profitable undertaking.
Along with the submarine-cable sale, Alcatel is said to have tapped Centerview to advise on other sales. The company might be looking to unload its phone equipment business, with some analysts valuing the unit from €200 million to €400 million.
Alcatel is up 4 percent on the session Monday.
Alcatel-Lucent (NYSE: ALU) may be getting some much-needed attention for one of its business units as the company continues looking for ways to streamline operations and move into profitability.
Reports have private equity funds like Permira Advisers, PAI Partners, and FSI -- a French sovereign fund -- all looking to place bids for Alcatel's submarine-cable business. The unit might bring in as much as €800 million (about $1.1 billion).
In entering a new $2.1 billion financing arrangement with Goldman Sachs and Credit Suisse last month, one of the caveats Alcatel faced was divesting some certain assets. The firm is looking to raise cash as $3 billion in bonds will start coming due in 2015.
The unit would be attractive given the large, 40 percent market share in the segment, not to mention that it is still a profitable undertaking.
Along with the submarine-cable sale, Alcatel is said to have tapped Centerview to advise on other sales. The company might be looking to unload its phone equipment business, with some analysts valuing the unit from €200 million to €400 million.
Alcatel is up 4 percent on the session Monday.
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