Chief Executive Officer for Alcatel-Lucent SA, Michel Combes plans to sell Eur1 billion of assets. The asset cut down was initiated to stem losses and focus on the businesses including ultra-high speed internet.
By 2015, the plan is expected to be completed to keep the French network equipment vendor cash from further decreasing. This was after seven consecutive years of sales dwindling. Alcatel then will look to cut its debt by Eur2 billion. This will be done through selling shares on the stock market of further asset sale, said Paris-based group in a statement.
During a conference call, Combes said that this is a turning point for the firm as it makes first time strong industrial choices.
Michel Combes took over the CEO position three months after predecessor Ben Verwaayen.
Alcatel will refocus its research money on IP networking and ultra-broadband access. This will be achieved through sales of its assets. Analysts had expected new strategic plan from Combes that will translate on asset sales and restructuring.
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