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

To: Gary Korn who wrote (3661)	8/16/1998 9:26:00 AM
From: William Hunt	Respond to of 21876

THREAD ---Sounds like LU is not in the market for a big acquisition this fall --- for 10 BILLION--- build it in house . August 14, 1998 Lucent Plans to Take Charges Of $145 Million for Acquisitions An INTERACTIVE JOURNAL News Roundup Lucent Technologies Inc. plans to take charges of $145 million in the current quarter related to two recent acquisitions, according to a filing with the Securities and Exchange Commission. The Murray Hill, N.J., telecommunications-equipment manufacturer said it will take a $65 million charge for in-process research and development costs for Lannet, an Israeli supplier of network switches. Lucent agreed to acquire Lannet on July 9 for about $115 million in cash, and is expected to complete the transaction by the end of this quarter. Company Profile: Lucent Technologies Lucent will also take a charge of $80 million related to in-process research and development for SDX Business Systems PLC, which Lucent acquired in July. SDX is a U.K. provider of business communication systems. Additionally, Lucent expects to take charges related to its announced $70 million acquisition of JNA Telecommunications Ltd., the Australian telephone manufacturer. Those charges weren't specified in the SEC filing. Lucent has been active on the acquisition front, as have its rivals in the furiously consolidating market for equipment that connects networks to carry voice and data. The technologies underpinning voice networks and data networks are converging, creating new opportunities for companies on both sides of the rapidly disappearing divide. But despite making a string of acquisitions, Lucent hasn't pursued a megadeal -- yet. Because of the terms of its spinoff from AT&T Corp., Lucent cannot participate in "pooling of interest" transactions, an accounting method for stock-swap takeovers that entails lower earnings penalties, until October. The company has said a more beneficial accounting treatment isn't likely to drastically alter its acquisition strategy, but some analysts and rivals doubt that and believe Lucent will become more of a player beginning in the fall. There is another large factor that affects Lucent's acquisition strategy, however: The company can develop data-networking technologies in-house through its vaunted Bell Labs division, allowing it to pass up another company's technology that might be ready to market but not meet Lucent's rigorous standards. As one Lucent executive put it recently, "When you own Bell Labs, it is hard to say you couldn't invent it yourself if you needed it." BEST WISHES BILL