Alcatel-Lucent is out to sell Eur1 billion worth of assets and slash costs through another Eur1 billion in a strategy to halt the company's expected restructure. The company's shares sky-rocketed to about 7.4 percent after Alcatel-Lucent SA's chief Michel Combes said that by 2015, the company will acquire a positive free cash flow. He also expected that Alcatel will zero in on its most remunerative section - ultra-high speed internet.
"I could blame the world for our difficulties, but the truth is we've missed product launches and been in too many geographies and businesses," said Combes.
After the restructure, Alcatel-Lucent, which is head-quartered in Paris, will have a Eur2 billion debt. The company's cash pile has been continuously degrading for over seven years now.
The company proposed a 'Shift Plan' which aims to narrow down its processes to only the top units and re-assign funds on IP networking and 'ultra-broadband access.'
"It's hard to really see why this latest restructuring will get executed according to plan and yield the benefits that have been outlined here," commented George C. Notter, an analyst from Jefferies Group LLC.
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