SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Alcatel (ALA) and France
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Steve Fancy who started this subject7/8/2000 1:07:02 PM
From: Maple Leaf  Read Replies (1) of 3891
 
Article on ALA Optical spinoff

Saturday 8 July 2000
Alcatel may issue tracking stock

The Ottawa Citizen

NEW YORK -- Alcatel SA is considering selling shares tied to the performance of its fiber-optic parts unit, a move that would make it the first European company to issue a tracking stock, executive vice-president Olivier Houssin said.

Europe's No. 2 phone-equipment maker said sales in the components unit will be about $400 million this year. The business makes lasers and other parts used in gear that beams information across fiber-optic networks.

Companies issue tracking stocks to free faster-growing businesses to trade separately without having to give up ownership. The stock sales are often used to reward employees with options or raise money for acquisitions. AT&T Corp. in April generated $10.6 billion by issuing tracking shares for its wireless-services unit. AT&T Wireless Group's stock has fallen 14 percent since the IPO.

JDS Uniphase Corp., the No. 1 maker of fiber-optic components, has a market value of about $109 billion. The company in April said it expected sales of about $1.4 billion in the fiscal year that ended June 30.

There's no timetable for Alcatel's decision, a process complicated by its status as the first tracking stock to be evaluated by European regulators, Mr. Houssin said.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News