Lucent is obviously acquiring HP's LMDS business because they have carefully studied the market and convinced themselves it would be an attractive market for them. But even more interesting is their timing to announce the acquisition, i.e., the day before the auction. Perhaps they feared that they might have had to pay more if they waited, i.e., a big LMDS market means HP's unit has more value? This certainly should be good news for LMDS and CVUS!
Right, but HP is known for selling off parts that don't work in order to focus on "core competency". HP has sold off a lot of businesses in the last five years, and has still had solid growth of both revenue and profit.