Alcatel (ALA) and France Message Board

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Technology Stocks : Alcatel (ALA) and France

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To: zbyslaw owczarczyk who wrote (2712)	11/1/2000 3:01:52 PM
From: telecomguy	Read Replies (2) of 3891

Z, WHY would ALA have to resort to investing over billion in 360 networks in order to get the optical deal? This is highly unusual and goes way beyond vendor financing. Is ALA's optical business that poor that they have to pump a billion in cash into Tsix to fund their buildout? Who else was bidding for this contract? I sincerely hope NT would never do a deal like this. If 360 Networks craters, I can't imagine what this would do to ALA's balance sheet.........but then in today's creative accounting world, ALA will probably just take a 1 billion write off BELOW the operating line and claim it was a one-time unusual write off and everyone merrily goes along. I do not like deals of this kind unless I am missing something. (the amazing thing is that apparently ALA was accusing NT in Europe of aggressive vendor financing to win deals away from ALA! I can't imagine what could be more aggressive than giving CASH to their customer so they can buy ALA's gear)

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