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

To: bertrand bidaud who wrote (649)	5/26/1999 10:20:00 AM
From: polarisnh	Respond to of 3891

Tellabs to buy overseas Alcatel assets Will spend $110 million on DSC European operations By Jeffry Bartash, CBS MarketWatch Last Update: 9:56 AM ET May 26, 1999 LISLE, Ill. (CBS.MW) -- Tellabs said Wednesday it will buy Alcatel's DSC Communications business in Europe for $110 million in cash, expanding its reach on the Continent. Tellabs, a maker of telecommunications equipment used in the transmission of data, video and voice over high-speed fiber-optic lines, said the purchase includes research, development and manufacturing assets. The acquisition will reduce earnings per share by about 1 cent in 1999 and will add slightly to profits in 2000. See press release. Tellabs (TLAB: news, msgs) rose 1 to 53 7/16 in recent trading. The DSC operations were acquired by Alcatel (ALA: news, msgs) of France in 1998, when it bought American equipment maker DCS Communications for $4 billion. Alcatel will retain DSC's U.S.-based operations. Tellabs said the agreement covers the DSC operations in Copenhagen, Denmark, and Drogheda, Ireland. It's also acquiring sales and support offices in England, India and Poland, and an interest in Fibcom India Ltd., a joint venture in India. Tellabs and Alcatel will also cross- license certain technologies. "The European businesses will enhance our ability to bring global solutions to market and serve the needs of our global customers," said Brian J. Jackman, president of global systems and technology at Tellabs. Tellabs has plants in Finland and Ireland.