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

To: Steve Fancy who wrote (41)	9/30/1998 12:54:00 PM
From: Steve Fancy	Respond to of 3891

(UPDATE) Investors Still Concerned About Outlook For Telecom-Equipment Makers Dow Jones Online News, Wednesday, September 30, 1998 at 12:21 NEW YORK -(Dow Jones)- Northern Telecom Ltd.'s revenue warning Tuesday carried over into the stock market Wednesday, with investors unloading shares of telecommunications-equipment makers amid concerns about the overall outlook for the industry. NorTel (NT), whose shares dropped 12% Tuesday, fell another $5, or 14%, to $30.875 on volume of 7.7 million around midday. Tellabs Inc. (TLAB), whose merger with Ciena Corp. went down the tubes, dropped $5.375, or 12%, while shares of Ciena (CIEN), Alcatel SA (ALA) and Nokia Oy (NOKA) also drew selling. Even Lucent Technologies Inc., which has seen no signs of weakening demand, watched its stock drop $5.125, or 6.8%, to $69.375 in active trading. Tuesday, Canada's NorTel said its revenue this year will fall short of expectations, although it backed earnings projections for 1998 and earnings and revenue views for 1999, clearing some confusion among befuddled investors who earlier thought the company issued warnings for both years. Wednesday, brokerage firms HSBC Securities and Warburg Dillon lowered their investment ratings on NorTel's stock to neutral stances, but lesser-known firm Edward Jones upgraded its stance to "buy" from "hold." Other telecom-equipment companies have issued warnings in recent weeks. But market leader Lucent has said it sees no signs of weakening demand and that it remains confident it will meet forecasts for revenue and earnings. French telecom-equipment and electronics concern Alcatel SA stunned investors earlier this month by warning that earnings this year will come in far below analysts' expectations. Motorola Inc. (MOT) has been in the throes of a protracted slump, and smaller rivals Ciena and Tellabs also have issued warnings. Lucent, spun off from AT&T Corp. in 1996, said it currently has $18 billion in orders and is winning business away from competitors across the board. Other rivals include Finland's Nokia Oy (NOKA) and Swedish company Telefon AB L.M. Ericsson (ERICY). And Cisco Systems Inc., the biggest maker of computer-networking gear, has become a competitor as the voice and data-networking industries rapidly converge. Lucent, Cisco (CSCO) and the other companies are racing to develop gear that can handle voice, video and data simultaneously. Lucent and NorTel are broadening their lines of data-networking products in order to help telephone companies manage the exploding streams of traffic. Copyright (c) 1998 Dow Jones & Company, Inc. All Rights Reserved.

To: Steve Fancy who wrote (41)	9/30/1998 1:09:00 PM
From: Steve Fancy	Respond to of 3891

France Telecom Shrs Fall Again On Placement, Issue Worries September 30, 1998 Dow Jones Newswires PARIS -- Shares in French telecommunications group France Telecom (FTE) are falling sharply for a third consecutive day on the Paris stock exchange Wednesday as many investors take profits amid the uncertainty over terms of a forthcoming convertible bond issue. "The stock outperformed September's bearish market so, added to the rumors surrounding the bond issue, there is a strong incentive to take profit," said a trader at Meeschaert-Rousselle brokerage house. Dealers added selling orders originated mostly from foreign investors. The French government has yet to release details of its planned sale of a 5.0% to 6.0% stake in the company, in which it sold around a 23% interest a year ago. France Telecom also hasn't detailed its planned rights issue by which it will increase its capital by 5.0%. Since the beginning of the year, France Telecom shares have risen 55%, outperforming the CAC-40 index benchmark, which has climbed only 11% during the same period. At 1445 GMT, the stock stood at FRF332.1, down 5.1%, or FRF17.9. The stock fell 1.9% Monday and 3.6% Tuesday. Sources Tuesday said French banks Societe Generale (F.SGF) and Paribas SA (F.PBS) would be the lead managers for the launch of a France Telecom FRF12 billion convertible bond issue. The issue would be part of a larger operation that will involve the sale of an additional portion of the French government's stake. While the government hasn't formally named the lead managers and remains tight-lipped about its plans, the French press has talked of unconfirmed rumors that new bonds would include a conversion price of FRF350 a share. Christophe Prat, an analyst at Jacques Chahine Finance, noted a valuation of France Telecom's shares based on average earnings per shares forecasts came to about the same FRF350 figure. -David Gauthier-Villars; 33 (0) -5300-0303; -dvillars@ap.org

To: Steve Fancy who wrote (41)	9/30/1998 1:13:00 PM
From: Steve Fancy	Read Replies (2) \| Respond to of 3891

Former U.S. Congressman Files Suit Against Alcatel September 29, 1998 NEW YORK--(BUSINESS WIRE)--Sept. 29, 1998--Bill Green, a former United States Congressman from New York and a trustee of certain family trusts, has filed a class action in the United States District Court for the Southern District of New York against Alcatel Alsthom (NYSE: ALA), its CEO Serge Tchuruk, and its directors for violations of the federal securities laws in connection with Alcatel's recent $4.4 billion merger with DSC Communications Inc., as announced by Lowey Dannenberg Bemporad & Selinger, P.C. Green alleges that the Class, former DSC stockholders, were wrongfully induced to approve the merger and to acquire Alcatel ADSs in exchange for their DSC shares at a disproportionately low exchange ratio, by reason of a materially misleading prospectus and proxy statement which failed to disclose a material decline in Alcatel's operating results for the first six months of 1998. After the merger was approved on August 27, 1998 and closed on September 4, 1998, Alcatel stunned investors when it announced on September 17, 1998 that its revenues and operating profits for the six months ended June 30, 1998 had declined 29% and 15% respectively from the prior year. The price of Alcatel's ADSs promptly plunged 39% to $19-1/8 per share. According to the complaint, had the market price of Alcatel ADSs reflected these results prior to the merger, the merger would not have been approved at the ratio of one DSC share to .815 Alcatel ADS. Green has selected the highly regarded law firm of Lowey Dannenberg Bemporad & Selinger, P.C. of White Plains, New York to represent plaintiffs and the Class. Former DSC stockholders who received Alcatel ADSs in the merger may obtain a copy of the Class Action Complaint and discuss the action by contacting: Stephen Lowey, Esq. or Richard W. Cohen, Esq. or Jeanne D'Esposito, Esq. LOWEY DANNENBERG BEMPORAD & SELINGER, P.C. Telephone (toll-free): 877/777-3581 Fax: 914/997-0035 E-mail: ldbs@westnet.com