Alca-Lu in talks to sell enterprise unit

Dylan Bushell-Embling
telecomasia.net
Alcatel-Lucent has revealed it is in advanced talks to sell its enterprise unit to a Chinese technology investment company, and has reported a swing to profit for the fourth quarter.
 
The vendor is negotiating with China Huaxin regarding the sale of Alcatel-Lucent Enterprise in a deal that would value the division at €268 million. Under the terms of the proposed transaction, Alcatel-Lucent would maintain a 15% stake in the unit.
 
Subject to the deal making it through the due diligence and regulatory approvals process, the companies aim to complete the sale in Q3 2014.
 
Alcatel-Lucent meanwhile reported its results for the fourth quarter and 2013, including a €1.3 billion ($1.77 billion) full-year loss.
 
But for Q4, the company reported a profit of €134 million, as compared to a €1.56 billion loss a year earlier.
 
Sales for the fourth quarter were largely flat at €3.93 billion, with the company's core networking and access revenue improving a slim 0.4% in constant currency.
 
Revenue from APAC improved 10% year-on-year, driven by China's LTE network rollouts.
 
Alcatel-Lucent has maintained its target of generating annual revenues from its core networking segment of over €7 billion with an operating margin of more than 12.5% by 2015.

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