Buyout or bankruptcy?
What will Ben do for an encore?
At that time, Alcatel-Lucent pledged to cut 500 million euros of costs, including 300 million in variable costs, in an effort to get the company back on track.
Labour unions at Alcatel-Lucent fear Verwaayen will cut jobs to make those cost savings, but say specific talks with the company have not yet begun. "The 2012 budgets are being done now, and we are very worried," said one union official.
For telecom gear analyst Pierre Ferragu, the respective plans at NSN and Alcatel-Lucent show just how tough the environment is for the two mid-sized European players.
CEO Ben Verwaayen’s turnaround strategy for Alcatel-Lucent includes eliminating 6,000 jobs and focusing research on optical, IP, broadband and applications enablement, in an effort to save €750 million in 2009
The France governement will never accept a bankruptcy. The US governement will never accept to sell the Bell Labs to a chinese company. Venture capital is putting an enormous pressure to a breakup. This is a nightmare. This is the reason for the current going nowhere from the share.
I see you've changed your sentiment from a strong buy to a hold.
Don't you think Ben or someone from management should stand up and put a halt to these bankruptcy rumors. The pps is diving like the company is a lost cause.
Ben lowered his forecast for revs in 2012 because of the situation in europe. He didn't say they wouldn't be profitable and he certainly didn't say they were in any financial situation. However, I wish he would say something
because the analysts and wall street are not taking alu serious at all, like it was doomed.
Hey Joe, yes I do.
Still believe Alcatel is a good bet and should recover big if they make the right moves.
Hang in there.
On the table imo:
Breaking the company up
Paying down debt
Now I can't believe you didn't realize that your "angel" alias is your alias too?!?
Another lame caniving trick the rats pull is that once they're trapped they immediately throw another alias out there. In an effort thinking others wouldn't think they are that stupid to do that... YOU KIDDING? SURE I BELIEVE YOUR (OOPS:) THAT STUPID (MORE LIKE TRAINING TECHNIQUE ;)
Cumon... you remember.... ;-)
On the advise instead of advice list (too;).. SURPRISE LOSER! :D
Continual Caniving Scumbag....
"American Wall Street government" and ratings agencies are making decisions based more on politics than economics ...... type of France culture
Buyout and bankruptcy are not the only choices, and I think not likely choices. Your links are dated, except for one.
(excerpt) "Analysts say Alcatel-Lucent, given its already high-rate of cash burn, can't really afford to make such deep cuts as NSN. And such a move could irk the French government, which owns a 2 percent stake in Alcatel, given the sensitivity around job cuts in the run-up to presidential election in May.
France recently blocked layoff plans at state-owned nuclear reactor maker Areva SA (AREVA.PA) and scuppered talk of job cuts at car maker PSA Peugeot Citroen (PEUP.PA). [ID:nL5E7ML3LL] [ID:nL5E7MH2QZ]
Finnish-German NSN said on Wednesday it would axe nearly a quarter of its workforce to save 1 billion euros ($1.3 billion) a year. It also plans to exit roughly half a dozen business lines in which it has a weak position, including fixed broadband access, fixed voice and wireless technology WiMAX.
"Alcatel won't make a big announcement like that of NSN, especially given the delicate political context in France right now," said one analyst.
Do you think politics in France would promote bankruptcy or allow a merger with a Chinese firm? ALU is between a rock and a hard place with the need to cut costs through work force reductions, but an inability to do so because of the culture/politics of France. My bet is that Ben will cut where he can and try to muddle through. We'll see. Good luck.