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

To: Steve Fancy who wrote (3417)	6/7/2001 8:45:35 AM
From: Mike K	Respond to of 3891

June 7, 2001 Alcatel to Sell DSL Modem Unit To Thomson for $386.7 Million Dow Jones Newswires PARIS -- Alcatel SA has signed a preliminary agreement to sell its digital subscriber-line modem unit for 456 million euros ($386.7 million) in stock to consumer-electronics group Thomson Multimedia SA, the groups said Thursday. Thomson Multimedia is to pay the French telecommunications-equipment supplier with 9.5 million new shares, issued at a price of 48 euros each. The deal is expected to be finalized by year end, provided it is cleared by Thomson's board and shareholders, Alcatel's representative bodies in the countries affected by the sale, and French and European competition authorities. The move is in line with Alcatel's strategy of focusing on network equipment, and in particular on DSL multiplexers, in which it has a 52% global market share, the two groups said. The DSL modem market is bound to become a consumer good, Thomson Multimedia's specialty, they said. The deal also will allow the two groups to reinforce their existing technological and commercial cooperation. Alcatel sold about 1.7 million DSL modems in 2000, accounting for a 22% global market share, the groups said, quoting research from Dell'Oro. More than 7.6 million DSL modems were sold in 2000. In the first quarter of 2001, Dell'Oro estimated Alcatel's market share was 28%.

To: Steve Fancy who wrote (3417)	6/7/2001 6:54:35 PM
From: zbyslaw owczarczyk	Respond to of 3891

According to last CC, ALA will see strong sales of new metro DWDM product in 2-nd half , including high profile contracts in US. Also strong growth in terrestrial business in US. New core( fabric form AMCC) and edge routers are doing great in several trials in US and Europe. In second half ALA will start to sale all optical cross-connect (already 40% market shares in cross-connect in US). When people talk about acquisitions they completely forgot about already proven (contracts in US) new products. As for loss 3B euro is a paper loss. after 2Q ALA will ahve extra 100 millions in the bank (operation profit), plus several hundred million during second half. over 1 billion from cost savings, 1 billion from sales of assets, and finally no taxes due to paper loss. In 2002 ALA will be 25% smaller with only high margins business. ZO

To: Steve Fancy who wrote (3417)	6/7/2001 6:54:35 PM
From: zbyslaw owczarczyk	Respond to of 3891

According to last CC, ALA will see strong sales of new metro DWDM product in 2-nd half , including high profile contracts in US. Also strong growth in terrestrial business in US. New core( fabric form AMCC) and edge routers are doing great in several trials in US and Europe. In second half ALA will start to sale all optical cross-connect (already 40% market shares in cross-connect in US). When people talk about acquisitions they completely forgot about already proven (contracts in US) new products. As for loss 3B euro is a paper loss. after 2Q ALA will ahve extra 100 millions in the bank (operation profit), plus several hundred million during second half. over 1 billion from cost savings, 1 billion from sales of assets, and finally no taxes due to paper loss. In 2002 ALA will be 25% smaller with only high margins business. ZO