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To: tekboy who wrote (12914)	10/5/2000 1:13:20 AM
From: Chemsync	Respond to of 24042

Alcatel cuts optronic ambitions By Martin Arnold Published: October 4 2000 12:21GMT \| Alcatel, the French telecoms equipment maker, is hoping to raise as much as E1.9bn from the flotation of a 20 per cent stake in its optical components division, valuing it at almost half the E17bn figure forecast in July. The company said it would price the "hybrid" tracking shares in Alcatel Optronics at between E85 and E100 when it completes the float, scheduled for October 20. That values the unit at between E8bn and E9.5bn. When the plans for the tracking stock were announced in July analysts estimated the optronics division, which makes the lasers, filters and switches used in the networks that carry high-speed internet traffic, would be worth between E15bn and E17bn. Jean-Christophe Giroux, Alcatel Optronics' chief executive, told shareholders at a meeting to approve the plan in September that caution would be exercised in the pricing of the unit. The recent slump in share prices of leading semiconductor and fibre-optic companies may also have contributed to the reduction. Alcatel is unwilling to cede overall control of its optronics operations, which accounted for only about 1 per cent of overall turnover in the first half, but is hoping to better highlight the value of its activities in such a high-growth sector. Alcatel Optronics' new Class O shares will have the same voting rights as ordinary Alcatel shares, but holders of the tracking stock will vote separately on some matters. Holders of the new shares will also be entitled to a preferred dividend based on the unit's net income.