STOCKS NEWS EUROPE-Alcatel rises on mounting unit sale hopes
Shares in telecom equipment maker Alcatel (Paris: FR0000130007 - news) -Lucent rise 4.6 percent, the top gainers on France's CAC 40 blue-chip index it rejoined in December, on mounting expectations of a sale of Alcatel's business unit which sells telecoms equipment and services to corporations.
According to a Bloomberg report, a decision on the sale is expected by March and Unify, a Gores Group LLC and Siemens AG venture, was among the interested parties, alongside "an industrial company from outside the U.S. and a Chinese investor".
Alcatel declined to comment on Monday.
"This unit is the most obvious asset to sell as part of the 'Shift' plan. We value it at 150-200 million euros, and a price above that would be good news," a Paris-based trader says.
Loss-making Alcatel is in the middle of a turnaround and debt-reduction plan at the group that includes 1 billion euros ($1.37 billion) in divestment.
Reuters Messaging: blaise.robinson.thomsonreuters.com@reuters.net