Lucent to Shed Unit to Cut Costs
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Lucent Technologies Inc., the biggest U.S. maker of telephone equipment, plans to sell a unit that designs networks for corporations to focus on selling telecommunications gear and services.
The sale of the enterprise professional services unit, part of Lucent’s Worldwide Services business, may generate several hundred million dollars, analysts said. The unit, which has more than half of the Fortune 100 companies as customers, may be sold by the end of the year, Lucent said.
Potential buyers include Electronic Data Systems Corp. and IBM Corp., analysts said. Lucent has been shedding product lines and jobs to cut costs and raise cash amid waning demand for telecommunications equipment. It plans to concentrate on selling to the world’s largest phone carriers to reverse losses.
Shares of Murray Hill, N.J.-based Lucent rose 20 cents to $7.37 on the NYSE.
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