Alcatel-Lucent may shed enterprise business


It appears that Cisco isn’t the only one looking to go on a diet.

According to the Wall Street Journal MarketWatch:

Alcatel-Lucent (ALU6.01, -0.05, -0.83%) SA is exploring the sale of its business that sells phones and other telecommunications gear to corporations and which could be valued at $1.5 billion or more, according to people familiar with the matter.

The Franco-American company has hired advisers and during recent days began to examine options for the business, which has about $1.5 billion in annual sales. Besides a sale to a single buyer, other options include an initial public offering of stock. An Alcatel-Lucent spokesman declined to comment.

Genesys would be part of the enterprise business. Speculation on potential buyers include Microsoft, HP, Ericsson, and other private equity firms.

Previously there was also talk about ALU being sold to an undisclosed Chinese firm. So there’s definitely something going on within the company…

It’s not that its enterprise business isn’t making money, but it’s just too small in the overall picture. And like Cisco, ALU also has anxious shareholders to appease and thinks that return to its roots will help.

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