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

To: Maple Leaf who wrote (2635)	10/20/2000 4:29:25 PM
From: Maple Leaf	Read Replies (1) \| Respond to of 3891

Alcatel raises $1.2 billion with optical tracking stock By Bloomberg News October 20, 2000, 11:40 a.m. PT PARIS--Alcatel raised $1.2 billion (1.4 billion euros) from selling shares in its optical parts unit, which it priced at the low end of the range because of declines in technology stocks. The French company sold 16.5 million new shares that will track the performance of Optronics, Europe's top maker of lasers, filters and parts that boost a fiber-optic network's capacity. It had planned to raise as much as $1.45 billion through the sale of 16.5 million shares at a range of $74.85 to $88.06. Alcatel is the first European company to sell tracking shares, following U.S. companies such as Sprint. The company can use Optronics shares to fund acquisitions, without giving up control of one of its fastest-growing units. "Market conditions are not the best to float any high-tech stock," said Gregory Jette, an analyst with Merchant Securities in London who recommends investors buy Alcatel stock. "Alcatel is doing the right thing by progressing because they will need the stock to make acquisitions." Holders of the shares will get voting rights in the parent company, though dividends will reflect the performance of Optronics. The company has said it will distribute 10 percent of the division's net income as dividends. Alcatel and rivals including Lucent Technologies and Nortel Networks are benefiting from soaring demand for optical equipment as phone companies and other businesses try to keep up with rising Internet use. Internet traffic is expected to quadruple each year during the next four years. Lucent and Nortel both plan to sell shares in their components units by the first quarter of next year. Copyright 2000, Bloomberg L.P. All Rights Reserved.