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

To: Steve Fancy who wrote (9)	9/25/1998 2:18:00 PM
From: Petrus	Read Replies (1) \| Respond to of 3891

Any CSCO ?, for me it's the best "Internet play", but with earnings. ,

To: Steve Fancy who wrote (9)	9/25/1998 2:36:00 PM
From: Steve Fancy	Respond to of 3891

Alcatel, Rhone-Poulenc PR Fumbles Mar Company Images By John Carreyrou PARIS (Dow Jones)--French companies are supposed to be growing more savvy in handling public relations. But you wouldn't know it from two high-profile blunders last week. Alcatel SA (ALA) drew fire for disclosing its operating profit for 1998 would come in well short of analysts' forecasts, just days after the company closed its $4.4 billion acquisition of DSC Communications Corp. (DIGI). Rhone-Poulenc SA (RP) aroused similar resentment by refusing to comment to the press for hours on a report that it was forced to close down the Illinois factory of its Centeon subsidiary even though angry analysts who called the company were able to get instant confirmation of the shutdown from Rhone-Poulenc managers. Investors sent both stocks reeling. Alcatel shares fell 38% in one day, while Rhone-Poulenc shares closed 9% lower on the Tuesday the Centeon news broke after being down as much as 11% at one point. Alcatel and Rhone-Poulenc insist they did nothing wrong. But public relations specialists and traders say the companies might have averted the uproar - and much of the stock declines - by more deft handling of the news. They say the steep declines reflected not only the facts but a loss of trust in the companies. Observers also blame lax oversight by French regulators, who rarely censure companies for failing to make information available quickly. "In France, there is still a disconnect on the part of too many managers about how to inform shareholders and about who their shareholders are," said Seth Goldschlager, a public relations consultant with Publicis Consultants in Paris. "My hunch is that, in both these cases, the companies weren't really trying to hide anything, but they aroused suspicion by not handling their communications properly." In Alcatel's case, timing was the issue. DSC Communications shareholders have alleged Alcatel withheld the warning until after the DSC deal was closed. Some have since filed lawsuits. Serge Tchuruk, Alcatel's chairman, insists he was briefed of the deteriorating profit outlook Sept. 8 - the day Alcatel completed the DSC purchase. Observers say the incident highlights the lack of oversight in the French stock market. "French companies would be more careful about the way they communicate if there was an incentive to do so," said the head of a U.S.-based private investment fund. "But I've never seen the COB (Commission des Operations de Bourse) take strong action to punish a company." As far as the Centeon plant shutdown is concerned, Rhone-Poulenc told Dow Jones in a written statement that "maintaining good relations with the news media, our shareholders and the investment community is of primary importance." It adds that "in the fast-moving situation on Sept. 15, we can assure you that we made every effort to provide an accurate statement as quickly as possible." Still, traders fault the company for not understanding the rules of the disclosure game as it's played in today's financial markets. When it confirmed to analysts that the plant had indeed been shut down, Rhone-Poulenc should have briefed reporters simultaneously, they say. "The corporate financial folks will say, 'I will brief my financial community,' not realizing that they need to inform the media too because the press is talking to financial analysts all day long and the info will get out regardless," says Goldschlager with Publicis Consultants. "If you brief person number one, you've got to brief everyone," he said. "You can't compartmentalize information anymore. The world is too small." -By John Carreyrou; 33 (0) 1 53 00 03 03; jcarreyrou@ap.org (Please disregard the fourth paragraph in the item that moved at 1542 GMT headlined "Alcatel, Rhone Poulenc -2: Lax Oversight, Unclear Rules". The text was garbled and contained incorrect information.)

To: Steve Fancy who wrote (9)	9/25/1998 2:40:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 3891

Alstom, Suez Lyonnaise Get One China Pact Each, Joint Pact PARIS (Dow Jones)--Anglo-French engineering company Alstom SA (ALS) and French municipal services company Suez Lyonnaise des Eaux (F.SLX) signed a joint incinerator contract in China Thursday. Each company also signed one other separate contract. The joint contract, worth $80 million, is to build an incinerator in the Pudong area. The incinerator will incorporate three waste treatment lines. Separately, Suez Lyonnaise signed a pact worth FRF138 million to build a water treatment plant in Shanghai and Alstom signed a $20 million contract for an automated painting line for the Wuhan-based Dongfen Citroen Automobile Company. All three contracts were signed during an official visit to China by French Prime Minister Lionel Jospin. -By Alan R. Katz; 331-53.00.03.03; akatz@ap.org

To: Steve Fancy who wrote (9)	9/25/1998 2:43:00 PM
From: Steve Fancy	Respond to of 3891

Profit Warnings Cause Europeans To Switch Investment Focus By Angela Macdonald-Smith and Robb M. Stewart LONDON (Dow Jones)--Woes in Asia and other developing markets will continue to bowl over some of Europe's highest-profile stocks, but investors should be ready to grab what's left standing. That's the advice fund managers are giving out to clients, who have been spooked by a daunting run of profit warnings in recent days as companies react to steadily shrinking markets. Evidence is mounting that further warnings will be issued in the coming months, but fund managers like Rory Powe, head of the European equities team at Invesco, are already switching into stocks that could emerge from the current turmoil as winners. "The world has changed over the last 12 months, and one's stock selection has had to change with that," Powe said. European bourses have chalked up some steep losses over the last week after brewing group Bass PLC (BAS), telecoms-equipment maker Alcatel SA (ALA), music publisher EMI PLC (U.EMI), energy major Royal Dutch/Shell Group of Cos. (RPETY) and Philips Electronics NV (PHG) all issued cautious trading statements. The latest to ring the warning bell was chemicals Scapa Group PLC (U.SCP), which said Tuesday that weak demand in Asia and softness in other markets had cut five-month pretax profit by about 15% from the year-earlier period. Most experts anticipate further warnings on profits and margins from companies in the same industries as the likes of Bass, Alcatel and Shell. Analysts also are cautious about semiconductors, steel and chemicals. Many market-watchers are looking for U.K. food and drinks group Diageo PLC (DEO) to have encountered some troubles through its exposure to Latin America, although Colin Davies, analyst at Goldman Sachs in London, argued that the group's share price has already "overly" factored in any potential damage. Companies across Continental Europe, until recently thought by some to be isolated from the global fallout, may also be among those bowled over. "In the U.K., the market has plumbed valuation lows not seen for a very long time," said Nick Stevenson, analyst at Paribas in London. "Elsewhere in Europe, you've still got a 'Goldilocks' scenario that very likely isn't going to be fulfilled." He added that profit warnings are striking hardest in sectors where the climate has been the most positive for the longest. That's why the warnings from technology companies such as Alcatel and Philips hit markets so hard, Stevenson said. "But I think it's most unlikely we'll get such warnings from the retail and consumer domestic stocks in Europe," he added. "That would mean a whole new ball game." Investors have been justifiably rattled by the global economic woes, but some experts say analysts shouldn't have been surprised themselves by the profit warnings. "Analysts working for brokerages ... are too often failing to understand what is happening in the global market and therefore have (earnings forecasts), guided by the companies, that may be unrealistic," Invesco's Powe said. But Powe conceded that Invesco also has had to learn its lesson and adapt its strategy. The asset manager had already pulled out of shares of U.K. manufacturers, who have long suffered under the dual weight of sterling's strength and the Asian financial crisis, and have favored telecommunications operators over telecoms-equipment suppliers. But Powe said Invesco has had to scale back its overweight stance on financial holdings and accept that even formation-technology and service-sector stocks will suffer in the bearish market. "There will be companies that are hit," he said. "But there is an opportunity to make good money in one or two years." Powe said a number of buying opportunities have opened up, although investors will have to be patient. He cited a range of companies, such as Dutch postal and express-delivery concern TNT Post Group NV (TP) and Swedish fashion retailer Hennes & Mauritz AB (S.HEM), that have positioned themselves to gain market share and so will recover much more quickly than other stocks. "Investment must be in sectors where there is visible and secure growth and where companies can gain market share and prosper," Powe said. The stocks that experts agree should be avoided are those of companies which have deluded themselves into thinking that restructuring plans are enough to save margins in a situation where prices are sure to fall. "Despite the best will in the world, mergers, restructuring and the pursuit of shareholder value are only going to narrow the margin decline, rather than turn margins around," Paribas' Stevenson said.

To: Steve Fancy who wrote (9)	9/25/1998 2:44:00 PM
From: Steve Fancy	Respond to of 3891

Alcatel, Tyco Get $150M Caribbean Telecoms Contract PARIS (Dow Jones)--French telecommunications and electronics group Alcatel SA (F.ALA) said Tuesday that it has been awarded a $150 million contract to lay an undersea network in the Caribbean alongside Tyco Submarine Systems. The contract, signed with several telephone operators, will link the Cayman Islands, Honduras, Costa Rica, Colombia and Panama, Mexico and the U.S., Alcatel said in a statement. Alcatel will handle around 75% of the total contract value. The network is scheduled for completion in 2000. Tyco Submarine is the undersea communications unit of the Bermuda-based Tyco International conglomerate (TYC).

To: Steve Fancy who wrote (9)	9/25/1998 2:47:00 PM
From: Steve Fancy	Respond to of 3891

Traders: Fidelity Major Seller Of Alcatel Shares PARIS (Dow Jones)--Large-scale selling by U.S. mutual fund Fidelity Investments has helped drive shares in Alcatel SA (ALA) sharply lower since the company issued a profit warning Thursday, traders on the Paris stock market said Friday. Paul Kafka, executive director for corporate communications for Fidelity in Europe, was unavailable for comment. A trader with a French brokerage house who declined to be named said Fidelity "dumped 1%" of its 10% stake in Alcatel Thursday and "is continuing to get out." "Fidelity couldn't care less about the price" at which its sells, he said. "If they've made the decision to get out, they will do it whatever the cost," he said. "I think Fidelity has been selling Alcatel shares for about a fortnight," said another trader with a different French brokerage house who also declined to be named. Although that trader didn't know for sure which brokerage houses or investment banks were doing the selling for Fidelity, he noted that SBC Warburg Dillon Read and Morgan Stanley Dean Witter "are the two biggest sellers on the market." "Warburg has been selling for 15 days," he said. Traders at Morgan Stanley Dean Witter and Warburg Dillon Read declined to comment on Alcatel. After opening 5.1% higher Friday, at FRF600, Alcatel shares were down FRF32, or 5.6%, at FRF539, around 1035 GMT. The company shocked investors Thursday with a profit warning for 1998 after reporting worse-than-expected first-half results. The shares fell 38% Thursday. -Mia Trinephi; 33 (0)1 5300 0303; mtrinephi@ap.org -John Carreyrou; 33 (0)1 5300 0303; jcarreyrou@ap.org

To: Steve Fancy who wrote (9)	9/25/1998 2:49:00 PM
From: Steve Fancy	Respond to of 3891

French Stk Mkt Watchdog To Probe Alcatel Shr Slide>ALA PARIS (Dow Jones)--The Commission des Operations de Bourses, the French stock-market watchdog, said Friday it has opened an inquiry to inspect trading on Alcatel SA's (ALA) shares on the Paris exchange Thursday. "The COB has opened an enquiry into trading in the shares," spokesman Didier Testot told Dow Jones Newswires It is understood the COB will investigate the circumstances surrounding the massive fall in Alcatel's shares Thursday after the telecommunications company stunned the market with a profit warning after reporting poor first-half results. Alcatel shares closed 38% lower, a fall of FRF356 at FRF571, Thursday after being suspended a number of times during the day as the stock smashed through volatility limits. Stock market traders say many investors are angry with the company's management for not disclosing more details of the company's deteriorating business ahead of the results. Alcatel shares were down 0.2% at FRF570, or FRF1, on the Paris stock exchange around 0925 GMT. -David Gauthier-Villars; 33 (0) 1-5300-0303; dvillars@ap.org

To: Steve Fancy who wrote (9)	9/25/1998 2:51:00 PM
From: Steve Fancy	Respond to of 3891

Alcatel Tries To Limit Damage As Funds Mgrs Sell PARIS (Dow Jones)--Alcatel SA (ALA) Friday tried to limit the fallout from its profit warning, but the stock continued to tumble despite a buy-back proposal designed to prop it up. Dealers said U.S. and U.K. mutual funds, including heavyweight Fidelity (FRM), were dumping shares in the French telecoms equipment maker. Heavy volume forced the stock to be briefly suspended from trading Friday. Brokers cut recommendations and the shares slipped 2.8%. Separately, the French stock market watchdog said Friday it had opened an investigation into the 38% drop in Alcatel's shares after Thursday's unexpected profit warning. Alcatel Thursday reported a lower-than-expected first-half operating profit and said it wouldn't meet forecasts in 1998. Analysts worried about a long-term cut in telephone networking contracts for Alcatel and that it had failed to give proper notice of lower expected profits. The stock decline also called into question a recent share swap under which Alcatel acquired DSC Communications Inc. (DIGI). The stock, worth $4.4 billion when the deal was announced in June, was worth about $1.9 billion at present. Traders said that U.S. and U.K. mutual fund selling was the major fuel to the Alcatel decline, especially Fidelity, which at the end of 1997 held 10% of Alcatel's stock. "I think Fidelity has been selling Alcatel shares for about a fortnight," said a trader who declined to be named. On Friday, Alcatel Chairman Serge Tchuruk - who is in London at another analysts' meeting on the company - said he will recommend to Alcatel's board "a significant share buy-back program." But that announcement offered little respite. At 1025 GMT, Alcatel shares were down another FRF28, or 4.9% at FRF543, with traders again saying U.S. and U.K. fund selling was continuing. They rebounded slightly later, and were trading down FRF17 at FRF555 around 1143 GMT. Also on Friday, analyst downgrades began to come in, with Goldman Sachs downgrading Alcatel to market underperformer from market performer. -By Alan R. Katz; 331-53.00.03.03; akatz@ap.org

To: Steve Fancy who wrote (9)	9/25/1998 2:52:00 PM
From: Steve Fancy	Respond to of 3891

Alcatel, Units Ratings Outlook To Negative From Stable:S&P LONDON (Dow Jones)--Standard & Poor's said it revised its outlook to negative from stable on Alcatel S.A. and its subsidiary Alcatel Australia Ltd. S&P also said it affirmed its long- and short-term corporate credit ratings, long-term senior unsecured debt ratings, and short-term commercial-paper program ratings on Alcatel S.A. and its subsidiaries. The outlook revision, it said, follows Alcatel S.A.'s announcement on Sept. 17, 1998, that operating income after depreciation for the first-half of 1998 increased by only 15% to FRF2.3 billion, or 3.7% of revenues. This is significantly below S&P's expectations, which it said assumed that the company's objective of an 8% operating margin after depreciation was within reach in the short term. While this objective has now been postponed to the medium term, the Alcatel group's balance sheet remains strong, with only about FFr2 billion in net debt, equivalent to 3% of permanent capital. ISSUER CREDIT RATINGS TO FROM Alcatel S.A. Corp. credit rtg A+/Negative/A-1 A+/Stable/A-1 Alcatel Australia Ltd. Corp. credit rtg A/Negative/- A/Stable/- AFFIRMED RATINGS Alcatel S.A. Sr unsecd debt A+ CP prog A-1 Alcatel Finance Inc. Canadian CP prog. (Gtd: Alcatel S.A.) A-1 Alcatel Finance Ltd. Australian CP prog (Gtd: Alcatel S.A.) A-1 Alcatel Inc. $1.5 bil med-term nt prog (Gtd: Alcatel S.A.) A+ $1 bil 3(A)3 CP prog (Gtd: Alcatel S.A.) A-1 Alcatel N.V. $1 bil med-term nt prog (Gtd: Alcatel S.A.) A+ DEM300 mil med-term nt prog (Gtd: Alcatel S.A.) A+ Swiss money-market claims prog (Gtd: Alcatel S.A.) A-1 DSC Communications (Alcatel USA) $150 mil sr unsecd nts due 2005 (Gtd: Alcatel S.A.) A+ $400 mil 7% conv sub nts due 2004 (Gtd: Alcatel S.A.) A $160 mil bank ln due 2001 (Gtd: Alcatel S.A.) A+

To: Steve Fancy who wrote (9)	9/25/1998 2:54:00 PM
From: Steve Fancy	Respond to of 3891

Fidelity Silent On Reports It's Dumping Alcatel By Mara Der Hovanesian NEW YORK (Dow Jones)--Fidelity Investments is mum on reports that it is dumping shares of Alcatel SA (ALA), the French maker of telecom equipment. NYSE-traded American depositary shares of Alcatel were recently up 1/16, or 0.3%, at 19 5/16, following a rollercoaster day on the Paris exchange - the shares there opened 5.1% higher, later were down as much as 10% and ended the day down 3.2%. That was after plunging 38.5% Thursday on news that Alcatel's operating profit was down 15% in the first half of the year, on a sales decline of 29%, and that the company's full-year results would miss forecasts. Citing Fidelity policy, Debra McConnell, spokeswoman for the Boston-based mutual fund company, said it would not comment on individual stocks or its buying and selling activities. Traders in Paris told Dow Jones earlier that Fidelity's large-scale selling of Alcatel was one factor in the stock's fall. One trader with a French brokerage house who declined to be named said Fidelity had dumped a tenth of its 10% stake in the company Thursday. A trader with another firm said the selling may have been going on for two weeks. Fidelity, the nation's largest mutual fund company, manages $691 billion in assets. -Mara Der Hovanesian; 201-938-2129; mara.derhovanesian@cor.dowjones.com

To: Steve Fancy who wrote (9)	9/25/1998 2:56:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 3891

Alcatel Shrs' Plunge Seen Warranted by Pft View, Sentiment By Alan R. Katz PARIS (Dow Jones)--Shares of Alcatel SA (ALA) may benefit from a small knee-jerk bounce in coming weeks, but analysts said Friday that the French telecom-equipment maker's gloomier profit outlook and a collapse in confidence in its management warranted the 40% drop by its stock over the past two sessions. Whereas Alcatel shares had previously received an extra boost from investor confidence in Chairman Serge Tchuruk, according to market-watchers, now they're suffering from a reverse distrust effect. Tchuruk himself hinted Friday at his own loss of confidence in management, saying Friday from London that "some people (at Alcatel) may have a bad time" as a result of the share-price plunge and profit slowdown. Alcatel shares fell 2.8%, or FRF16.00, on the day Friday to end at FRF555.00 as the CAC 40 index shed 1.7%, or 60.04 points, to close at 3465.22 points. The stock plummeted 38% Thursday. Brokerage firms and investment banks wasted little time in slashing earnings estimates and share-price targets after Tchuruk warned Thursday that operating profit would fall short of expectations this year and that the company was being hurt by slowing European telecom investment and by the Asian financial crisis. Analysts said Friday they were downgrading earnings-per-share projections by between 20% and 38% for each of the next three years. Meanwhile, credit-rating agency Standard & Poor's on Friday cut the outlook for Alcatel and its Alcatel Australia Ltd. unit to negative from stable. "If you revise profits down each year by 30% to 35%, then shouldn't the shares fall by that much as well?" asked a Paris-based analyst. "Then you add on that the shares will receive a lower price/earnings multiple, since there is now a distrust effect." Many investors were angered that Alcatel waited until presenting first-half earnings before issuing a warning, particularly because the company only recently completed a share swap by which it took control of DSC Communications Inc. (DIGI) of the U.S. French brokerage firm Pinatton cut its 1998 EPS target for Alcatel to FRF28.00 from FRF45.00 and downgraded its 1999 estimate to FRF38.00 from FRF52.00 and its 2000 projection to FRF53.00 from FRF66.00. Salomon Smith Barney cut its 1998 estimate to FRF29.63 from FRF44.66, its 1999 projection to FRF38.12 from FRF55.43 and its 2000 target to FRF51.87 from FRF67.98. Goldman Sachs cut its 1998 and 1999 estimates by 20%, taking them to FRF30.00 and FRF36.00, respectively. In a research note issued Friday, Salomon Smith Barney analyst Douglas Smith gave Alcatel stock a 12-month price target of FRF750.00 but listed it as high-risk. "The high-risk rating comes mainly from what is clearly a problem of management credibility," he wrote. "Much of the (previous) improvement in the share price had been attributed to the strong management team led by Serge Tchuruk ... (Thursday's plunge) was largely a measure of shattered faith that its top team could perform managerial miracles," wrote Goldman Sachs analysts Richard Kramer in London and Mary Henry in New York. But the distrust runs even deeper. "My opinion is that Tchuruk voluntarily masked this information from the market in order to complete the DSC deal," another Paris-based analyst said. "Or it could be that his management team concealed the information from him in an attempt to unseat him." Analysts said a power struggle may be in progress between Tchuruk and executives loyal to former Chairman Pierre Suard. Tchuruk took over the top job after a judge in 1995 barred Suard from taking an active role in managing the group as part of an investigation into fraud and misappropriation of funds at Alcatel. Suard was convicted, fined and given a three-year suspended sentence in 1997. "We've come back to the bad days of 1995 in terms of a lack of investor confidence in management," the Paris-based analyst said. On a more fundamental level, Goldman Sachs said it now expects Alcatel to post operating margins of 5% in 1998 and 7.3% in 2000, below the company's still-retained medium-term goal of an operating margin equal to 8% of sales. Salomon Smith Barney noted in particular that Tchuruk's warning that European telecom operators were cutting network investment - and therefore switching contracts on which Alcatel had been counting - was the worst news on Thursday. The investment bank pointed out that France and Germany alone account for 24% of Alcatel's telecom sales and said it felt Alcatel's profit goals had been set back by about a year. Analysts did agree that there's little additional downside to Alcatel shares at this point: They've fallen 61% from their record high in mid-July. "Telecom stocks that completely lose investors' confidence, such as Motorola Inc. (MOT), tend to find a floor at about 0.9 times previous year's sales," Salomon Smith Barney said. "For Alcatel, this corresponds to $19.75" per American Depositary Share Alcatel's ADSs traded at 19 5/16 at 1659 GMT, up 0.4%, or 1/16, on the day. Investor lawsuits against or regulatory probes of Alcatel could weigh further on its share price. The French stock-market regulator has already said it is launching an investigation into the timing of the profit warning, and analysts expect the U.S. Securities and Exchange Commission to initiate one as well. Analysts also said they wouldn't be surprised by a lawsuit from former DSC shareholders. "The U.S. is a very litigious place, and these people have lost a lot of money in a very short time," said the Paris-based analyst. "Money could well pay a few lawyers' fees." When the transaction was announced in June, DSC shareholders were receiving $4.4 billion in Alcatel stock. By the end of Thursday's session, that stock was worth $1.9 billion. -By Alan R. Katz; 33-1-5300-0303; akatz@ap.org

To: Steve Fancy who wrote (9)	9/25/1998 2:57:00 PM
From: Steve Fancy	Respond to of 3891

Alstom Gets $4M Pact To Remake, Upgrade Locomotives MONTREAL (Dow Jones)--Alstom SA (ALS) received a contract worth about $4 million from Locomotive Leasing Partners LLC to remanufacture and upgrade 10 locomotives. In a press release Saturday, Alstom said it expects to begin delivery this month. Locomotive Leasing Partners is a joint venture of GATX Corp.'s (GMT) GATX Capital Corp. and General Motors Corp.'s (GM) Electro-Motive division. Alstom remanufactures and maintains rail transportation equipment.

To: Steve Fancy who wrote (9)	9/25/1998 2:59:00 PM
From: Steve Fancy	Respond to of 3891

Alcatel CEO Denies Any Wrongdoing in DSC Deal -Report PARIS (Dow Jones)--Serge Tchuruk, chairman and chief executive of French telecommunications group Alcatel SA (ALA), Monday denied any wrongdoing in the company's takeover of the U.S.' DSC Communications Inc. and said that despite last week's share tumble, Alcatel wasn't looking for a merger partner. "We followed the U.S. regulations to the letter. It's now a matter for lawyers. The DSC deal is irreversible," said Tchuruk in an interview Monday in the French business daily Les Echos. On Friday, former DSC shareholders filed a purported class-action suit against Alcatel. Alcatel completed its takeover of DSC in early September. When the deal was announced in June, it was worth $4.4 billion for DSC shareholders. By the end of the day last Thursday - after Alcatel's shares had plunged 38% after a profit warning - the same Alcatel shares were only worth $1.9 billion. Tchuruk defended again the timing of his announcement, although he admitted that Alcatel must in the future be able to better anticipate profit shortfalls. "On a corporate culture level, progress must be made so our employees can better and more quickly anticipate ever more volatile market conditions," Tchuruk said. He also continued his effort to try to regain a bit of the credibility he and Alcatel management lost last week with the profit warning. "I will do my best to demonstrate that Alcatel's strategy is the right one and that for what concerns the financial reporting, we will take measures to ensure a better visibility of our company", he said. Tchuruk said its company took the initiative to ask the French stock market watchdog Commission des Operations de Bourse to probe the slide in the Alcatel's share that occurred on Sept. 17. The COB said on Sept. 18 it had opened an enquiry to review the trading in Alcatel's shares. Tchuruk acknowledged investors might be angry with the way the company handled the announcement of an unexpected profit warning. "But once more, if we had reported a 20% fall of our sales, I would understand the emotion, but it's only a slowdown in our growth," said Alcatel's chairman.

To: Steve Fancy who wrote (9)	9/25/1998 3:01:00 PM
From: Steve Fancy	Respond to of 3891

Alcatel Board Approves Up To 10% Share Buyback PARIS (Dow Jones)--The board of directors of French telecommunications company Alcatel SA (ALA) Monday gave company chairman Serge Tchuruk approval to launch a buy-back of up to 10% of the company's shares. Tchuruk on Friday said he would propose the buy-back in an effort to shore up Alcatel's shares. Those shares plunged 38% on Thursday after Tchuruk issued an unexpected profit warning. "The board considers Alcatel's current share price undervalues the company," Alcatel said in a statement. Alcatel shares have continued to fall since Thursday. Friday, they fell 2.8%, and at 1042 GMT Monday they were down 5.4%, or FRF30, at FRF525. Tchuruk will head to New York later Monday to meet with investors and analysts. He held an analysts' meeting in Paris on Thursday and a meeting with fund managers in London on Friday. Some former DSC Communications Inc. shareholders have already filed suit against Alcatel alleging the company violated federal securities laws. Alcatel completed its share-swap takeover of DSC in early September.