Paris, May 4, 2000 - Alcatel's Board of Directors approved the project to study an Initial Public Offering, between now and the end of the year, for a significant part of its cables and components business, which would include power cables, telecom cables, data and cabling systems, equipment and special cables, and metallurgy.
The objective of this project is to provide the autonomy and resources necessary to put into place a new, aggressive strategy, at the moment when a rebound is occurring in the industrial sector, particularly in Europe. With annual revenues of EUR 4 billion, this new company would be positioned as a leader in its markets, with a solid financial structure. It could then play a major role in high value added sectors or take advantage of potential industry consolidation. The current management team will remain in place, headed by Gerard Hauser.
Alcatel will keep those businesses that are key to its strategy, in particular fiber optics and submarine network equipment, as well as components mainly used in telecommunications systems.
This transaction will allow Alcatel to complete its strategic focus in the telecom markets and the Internet, and to devote all of its resources and development to integrated voice/data solutions both for carriers and enterprises.
This project will be submitted to labor representatives for consultation in the coming weeks. The new company will employ 18,200 people in 18 countries, with its principle operations in France, Germany, Norway, Switzerland, Benelux, Canada, and the U.S. The level of employment will not be negatively effected by this move.
The IPO will include an attractive offer for employees as well as preferential treatment for Alcatel's shareholders. |