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Technology Stocks : Alcatel (ALA) and France -- Ignore unavailable to you. Want to Upgrade?

To: Steve Fancy who wrote (1701)	5/4/2000 1:40:00 PM
From: Tony A. Matthews	Read Replies (2) \| Respond to of 3891

This is very bullish press. I'm new to Alcatel but the more I learn about this company the more I admire how "Cha-RUK" has transformed this company. What an amazing conglomerate this company used to be - newspapers and paints!?!

To: Steve Fancy who wrote (1701)	5/4/2000 2:48:00 PM
From: Steve Fancy	Respond to of 3891

Alcatel Chairman Says Cable Float To Create Pure Telecom Play Dow Jones Online News, 05/4/2000 12:59 PARIS -(Dow Jones)- Alcatel SA (ALA) Chairman Serge Tchuruk said Thursday the French telecommunications equipment supplier will become only the second "pure play" telecom company in Paris' blue chip CAC 40 index behind France Telecom (FTE) after unveiling plans to hive off its low-growth energy and telecom cables business this year. "It will take no great surgery to break off the cable businesses from Alcatel," leaving the parent company "a pure play in telecoms," said Tchuruk, speaking at a conference call with analysts. Earlier Thursday, Alcatel announced it will list its EUR4 billion-a-year energy and telecom cables activities by the end of this year but declined to stipulate how much the business could be worth. The announcement came on the same day the group released first quarter results showing a sharp turnaround in profitability. Helped by a cost-cutting program and a recent reorganization of its activities, the group posted profits of EUR258 million in the first three months of this year, compared with a loss of EUR18 million a year earlier. Alcatel predicted revenues will grow 30% and operating profit 60% in 2000. Investors cheered the comments, pushing shares in Alcatel on the Paris bourse up 9.5%, closing at EUR275.50, as a string of analysts upgraded their recommendations on the stock. Alcatel's cables business has an annual turnover of EUR4 billion. Freeing itself of the cables business would add seven percentage points on an annual basis to the company's revenue growth, Tchuruk told analysts. The Alcatel boss said that once floated the cables business will be the world's second largest behind the combined operations of U.S. group General Cable and Pirelli. In the move to hive off its energy and telecom cabling business, Alcatel will still keep a EUR3.3 billion portfolio of fiber-optic and submarine systems and other telecom component businesses seen as key to its core activities, Tchuruk said. Thursday's announcement follows Alcatel's tie-up earlier this week with Japanese group Fujitsu to manufacture third-generation mobile phone handsets. -By Greg Keller; 33-(0)1-40-17-17-40 greg.keller@dowjones.com; greg.keller@dowjones.com (This story was originally published by Dow Jones Newswires) Copyright (c) 2000 Dow Jones & Company, Inc. All Rights Reserved