Lucent Sets Vote on Reverse Stock Split

Lucent Technologies Inc. will ask shareholders for the option to approve a reverse stock split at any one of four ratios, a move needed because of the lingering slump in Lucent’s stock price.

Lucent, which announced plans for the reverse split in October, will seek shareholder approval of the proposal during its next annual meeting, set for Feb. 19 in Dallas, according to a preliminary proxy statement filed late Monday with the Securities and Exchange Commission.

In a reverse stock split, a set number of shares is combined into one share worth more money. The ratios the board is considering are one for 10, one for 20, one for 30 and one for 40.

The proxy also disclosed that Lucent paid Patricia Russo, who became president and chief executive in January, $1.2 million in salary. Lucent, which has about 3.5 billion shares of common stock outstanding, has been badly hurt by the prolonged slump in the telecommunications industry.

It recently was warned by the New York Stock Exchange that it could be delisted because its share price stayed below the $1-per-share required minimum. The warning came in October, when Lucent’s average closing price had been below $1 for 30 straight trading days.

Lucent closed up 14 cents Monday at $1.89.