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

To: David Hansen who wrote (20676)	8/19/2002 4:08:44 PM
From: elmatador	Read Replies (1) \| Respond to of 21876

Marconi shareholders 'to lose all' COMMENTS: This is the result when a company become run its creditors. Keep the eyes in the banks that finances LU and NT Marconi shareholders are set to see the value of their stock become almost worthless when a survival deal is signed later this week, according to reports. The troubled telecoms equipment firm is expected to announce how it will restructure its crippling £4bn ($6.1bn) debt mountain, within the next few days. Some newspaper reports have suggested that Marconi will hand over all but 1% of the firm to its banks and creditors, while the Sunday Telegraph said it would go into "voluntary liquidation". Either way, such a deal would signal the end of the road for Marconi, once a champion of the new economy which predicted huge gains as telecoms systems were expanded and upgraded. Following the collapse of the dot.com bubble, Marconi was left unable to pay debts run up during an ambitious international expansion programme in the late 1990s. Investment nightmare Leaked details of the financial restructuring, sent Marconi shares down by 30% to 2.5p on Friday. Investors have already watched the value of their savings shrink from a high of 1,240p in September 2000. Marconi warned in June that the survival package being thrashed out with banks and bondholders would lead to a "very substantial dilution in value for existing equity holders". But the lengths to which the company was willing to go to secure a deal had been unclear. "Negotiations are ongoing with (Marconi's) syndicate lending banks and certain bondholders in respect of the group's financial restructuring," Marconi said in a statement issued on Friday. "Further announcements will be made in due course," it added. Deal details Press reports suggest that the survival deal under negotiation will see banks and bondholders cancel Marconi debts in return for shares in the firm. A syndicate of 31 banks is expected to write off about £1bn of £2.3bn owed. The so-called "debt for equity" rescue plan is also being used by bankrupt cable firm NTL in its ongoing restructuring. City sources say Marconi turned down the chance to extend its borrowing until 2005 in return for higher interest rates last Autumn. Now, it has little option but to cede control of the company. Marconi has 7,000 employees in the UK, and manufacturing operations in 16 countries.

To: David Hansen who wrote (20676)	8/24/2002 8:39:28 AM
From: elmatador	Read Replies (2) \| Respond to of 21876

More Job Cuts Loom at Lucent By Scott Moritz Senior Writer 08/23/2002 07:48 AM EDT Lucent is pulling out the ax once again, and CEO Patricia Russo is doing the swinging. <Emat's COMMENTS: The Banks are forcing LU to cut cash burn rate. The vendor will ave its capacity top do business impaired by these cuts. As in Marconi case: "...The banks have been trying to salvage as much money as they can for themselves while giving the company a chance to continue to operate in the longer term..." guardian.co.uk; The struggling telecom networking gearmaker is planning yet another massive scaledown as it attempts to right itself in a collapsing market, people close to the company say. These people say that Lucent veteran Russo drove the decision to make more job and business-line cuts, signaling her willingness to go further than Chairman Henry Schacht. The latest round of cutbacks looms as companies across the struggling network-gear sector face the choice of shrinking their already sinking businesses even more or placing high-stakes bets on a long-anticipated industrywide recovery. With the shares of Lucent and many of its peers down 90% and more over the last year alone, neither course appears certain to succeed as the telecommunications economy continues to crumble. Dropping Lucent is preparing to drop product lines and cut its total staff by an additional 25% below targeted levels, eventually bringing total staff to between 30,000 and 35,000 workers, according to people familiar with the company. The cuts would leave Lucent at a quarter of its size when it was spun out from AT&T some six years ago. The latest plans continue an effort the company started a year ago, when it vowed to focus on its best biggest buyers and cut all unprofitable customers, countries, products and research centers. A number of prized projects and divisions are expected to feel the pinch, including parts of its fabled Bell Labs, some of its highly engineered optical efforts including its LambdaRouter switch and certain areas of data communications and network access lines. Many of these areas were previously thought to hold the keys to Lucent's future growth. Sacred Cows The latest reduction will sacrifice a sizable portion of the company's top-line performance, say people familiar with the plans. With the loss of several unpopular and unprofitable products, Lucent's total sales will likely drop to a range between $9 billion and $11 billion annually, or $2.5 billion per quarter, these people say.

To: David Hansen who wrote (20676)	8/24/2002 9:07:59 PM
From: elmatador	Read Replies (1) \| Respond to of 21876

LU is run by its creditors. Lucent: Devil in the Details? Overview Imagine a document 257 pages long, weighing nearly four pounds in paper form, governing virtually every aspect of a company’s financial requirements over the next 12 months. .... As the document says, “The Credit Facilities are secured by substantially all of Lucent’s assets…” lightreading.com Please do not forget to read the views of the readers of the articles. I repeat: LU will go MONI's was and shareholdres will be rogered.