No Split for Alcatel (ALU) as CEO Combes Looks to 'Slim-Down' Operations
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Alcatel-Lucent (NYSE: ALU) shares are lower on the session amid headlines that the CEO Michael Combes is planning cost cuts and a management shakeup.
According to the WSJ, Combes is looking to streamline, but not break up, Alcatel with the latest effort. Unspecified assets sales are also likely to be mentioned.
Investors have pushed the stock up 37 percent this year in anticipation that Combes would deliver more value to shareholders. He joined as CEO on April 1st.
Some might have been looking for a split of the company, specifically Alcatel's fixed-line assets. This new plan might have an adverse effect on shares until it is laid out in greater detail.
Tuesday, Alcatel stock is down 2.6 percent.
According to the WSJ, Combes is looking to streamline, but not break up, Alcatel with the latest effort. Unspecified assets sales are also likely to be mentioned.
Investors have pushed the stock up 37 percent this year in anticipation that Combes would deliver more value to shareholders. He joined as CEO on April 1st.
Some might have been looking for a split of the company, specifically Alcatel's fixed-line assets. This new plan might have an adverse effect on shares until it is laid out in greater detail.
Tuesday, Alcatel stock is down 2.6 percent.
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