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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (12389)	1/8/2000 5:36:00 AM
From: stilts	Respond to of 21876

Chuz, I, too, have lost a great deal on this fiasco. I agree with Hagar's point that Lu did see, or should have seen, this coming long before they announced it. The only honorable thing about the timing of Lu's announcement is that they apparently didn't let too many Wall Street investment banks in on the info before they released it to the world. That is very unusual and to be commended. Almost everyone suffered together this time: very egalitarian of Lu. Regarding your suspicion that Lu double-counted (as a cash sale and as an ongoing investment) the $625 million of receivables it sold to the bank-managed entities via the QSPE, that would be fraud, and I still believe there is no way in hell they did that. I believe they were paid $600 million in cash by the bank-managed entities. And the $700 million of other receivables they assigned to the QSPE as collateral to ensure full collection remained on Lu's books as receivables until transformed into cash (which would be "restricted" cash and remain in the QSPE to the extent the sold receivables remain uncollected). stilts