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To: Steve Fancy who wrote (3092)	3/2/2001 3:32:23 PM
From: Steve Fancy	Read Replies (2) \| Respond to of 3891

Street Split On Buyers, Price For Lucent Fiber Business Dow Jones Online News, 03/2/2001 14:57 By Johnathan Burns Of DOW JONES NEWSWIRES NEW YORK -(Dow Jones)- Lucent Technologies Inc.'s (LU) potential sale of its optical fiber business is drawing more suitors and larger prices than some on Wall Street had expected. Though no formal bid process has yet begun, The Wall Street Journal reported Friday that Corning Inc. (GLW), Alcatel SA (ALA), JDS Uniphase Corp. (JDSU) and Pirelli SpA (I.PIR) have all informally expressed interest in the business, which was Lucent's only unit to show sales growth in the company's first quarter of fiscal 2001. The paper also reported the companies are preparing to make bids for the unit that could range from $8 billion to $10 billion, according to people familiar with the matter. But there is a diversity of opinion on Wall Street as to which company would be the most viable candidate to buy the Lucent unit and if any of the reported suitors would be willing to pay such a high amount. CIBC World Markets telecommunications analyst Jim Jungjohann was among the first to establish a possible price of $8 billion on Lucent's Optical Fiber Solutions unit, based on a multiple of four times sales. However, he said given current market conditions, he would be surprised to see anyone pay the higher $10 billion price reported. Also, the most logical buyer - Corning - would likely face the most difficulty getting the deal by federal regulators. Because of Lucent's liquidity needs, it may shy away from a deal that will require a lengthy approval process. "I would be really surprised if Lucent does do something with Corning," he said. "If they do contemplate a sale to Corning, they'll do it knowing it would take twice as long to complete as it would with anyone else." Lucent has recently completed a $6.5 billion financing deal that will cover the company's cash needs into the foreseeable future. That loan package might provide the company with some breathing room. Lucent's Optical Fiber Solutions unit posted revenue of $1.8 billion in 2000 and could see revenue of up to $2.1 billion this year, estimates ING Barings telecommunications equipment analyst Tom Lauria. Selling the unit would be the most recent of several moves Lucent has made to trim its product and portfolio line and refocus the company on building wireless and optical systems. (This story was originally published by Dow Jones Newswires) Copyright (c) 2001 Dow Jones & Company, Inc. All Rights Reserved