Lucent Technologies (LU) Message Board

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Technology Stocks : Lucent Technologies (LU)

LU 2.660

-1.8%

Jan 30 3:59 PM EST

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To: Softechie who wrote (17837)	3/18/2001 9:35:01 PM
From: Adam Nash	Read Replies (2) of 21876

No, you are assuming that LU shareholders will get 1 share of Agere for every share of Lucent, and that is just not how the math works out. Best estimate from the last repricing was a little under 1 share Agere for every 4 shares of Lucent, but the final numbers will depend on: 1) How many shares are eventually sold in the IPO versus held by Lucent. 2) How Lucent structures the distribution. All indications are that this will be a tax-free divestiture with Lucent shareholders receiving some fraction of a share of Agere for each LU share. As for the proceeds of the IPO, they will clearly be used to pay off debt, etc. Thus, this should strengthen LU's balance sheet. However, the fact that LU is pushing this IPO in this market indicates that LU is desperate to do this at any price. Might be a good indication for the relative price of Agere... LU shareholders likely won't see any Agere anyway until 3-6 months after the IPO. There hasn't been any official announcement on this yet that I know of.

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