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

To: zbyslaw owczarczyk who wrote (3251)	4/30/2001 8:18:25 PM
From: zbyslaw owczarczyk	Respond to of 3891

PARIS, April 26 (Reuters) - Telecoms equipment maker Alcatel has booked provisions to cover any losses that might stem from converting bonds issued by debt-ridden fibre-optics firm 360networks (Toronto:TSX.TO - news) into shares, Alcatel said on Thursday. Alcatel Chief Financial Officer Jean-Pierre Halbron said the company had 10-12 years to convert what amounted to a loan to 360networks into stock, but said 360networks had an option to force the conversion at end 2003. ``Given the stock price, it seemed prudent to us today to take out a provision on these shares, which is not a provision for client risk,'' Halbron told a news conference, declining to give the size of the provision. Shares in Alcatel, which bought $700 million worth of 360networks convertible bonds in when it sealed a contract to supply it with a trans-Pacific link, slid earlier this week on worries about the Canadian company. 360networks (NasdaqNM:TSIX - news) sought to reassure investors on Tuesday, saying it was meeting debt payments and was not about to seek bankruptcy protection, but jitters remain. Shares in 360networks closed at C$2.15 on Wednesday on the Toronto bourse, a far cry from the C$28 they were trading at when it announced its deal with Alcatel on October 31, 2000. Halbron stressed that 360networks, which has built up a debt burden of $1.2 billion to fund its global fibre-optic network, was not a start-up and was profitable pre-amortisation. ``Their sales are below their forecasts. (But) they are looking, with their shareholders, at what their business plan will be. Are there some investments they can push back? We are studying a new business plan with them,'' Alcatel Chief Executive Serge Tchuruk said. Alcatel earlier on Thursday posted a four percent rise in first-quarter operating profit and a 21 percent rise in sales, but scaled back its full-year outlook and said it would outsource its mobile handset production.