Shares of ALU surged more than 10% this morning on speculation of a potential bid from a Chinese company. This would be a very interesting development in the telecom sector, including in the contact center segment.
Alcatel-Lucent already does business in Asia and recently has been trying to re-invent itself into a Web-savvy telecom company. It’s often cited that the company faces stiff competition from Chinese manufacturers such as Huawei and ZTE.
PARIS/FRANKFURT, March 3 (Reuters) – Shares in telecom gear maker Alcatel-Lucent (ALUA.PA) rose 11 percent on market talk of a potential bid from a Chinese company, traders said on Thursday.
Traders also cited talk of positive comment from management on a roadshow in the United States.
“(We) hear some very vague Chinese bid rumours. Also hearing management roadshowing in the U.S. and apparently they did quite a good job,” one trader said.
Several traders also mentioned a bullish note from Barclays Capital, which was also boosting Alcatel’s stock. “We continue to see Alcatel-Lucent as the best positioned of a challenged group of companies in the telecom infrastructure segment and raise our estimates again,” Barclays analysts said in the note. The analysts raised their price target for Alcatel to 3.90 euros from 2.80 euros, with an “equal weight” rating.
An Alcatel spokeswoman declined to comment on the market talk.
At 0913 GMT, the stock was up 8 .1 percent, giving the company a market value of around 9 billion euros ($12.5 billion).
Volume on the stock, which reached a 2-1/2 year high, already represented 120 percent of the stock’s 90-day average daily volume, compared with 39 percent for France’s CAC 40 .FCHI index. ($1 = 0.7202 euro)