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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (19765)	4/1/2002 10:55:27 AM
From: David Hansen	Read Replies (2) \| Respond to of 21876

How does NT unlock any value in Lucent and vice versa? On the circuit switching side - either 5ESS gets spun off or DMS - There is no justification for keeping both. LU has revamped it's optical line and DMX, EON, UNITE, LambdaRouter are all showing traction while NT is going in the opposite direction with optical... No value here for Lucent in NT's product line but NT has a sizable installed base that would make no sense in abandoning so there is no value in each other's optical lines... LU spun off the enterprise division in Avaya. Why would a retrenchment in that position via NT's Enterprise Division make any sense? LU has historically been a strong ATM player via Ascend/Cascade. Passport 15000 is ranked 3rd for most ATM markets. Since neither player has a stellar position currently and there is tremendous overlap in product lines - there is not a clean solution. LU's layer 3 switches and routers are basically AccessPort on the low end and Nexabit on the high end. NT in comparison has a full product line. There is some value here for a combined company but how do you cobble together a story when NT has failed to make any headway against Cisco since the Bay acquisition? Blending wine and blending companies is a real art form but in both cases you need to start out with the finest ingredients to make it work. I don't see it with NT/LU...