ITT will sell stake in Alcatel to its partner

Article Abstract:

ITT Corp is planning to sell 30 percent of its stake in Alcatel N.V. to Alcatel Alsthom for $3.6 billion in cash and stock. ITT's stock has been performing poorly for several weeks and Chairman Rand Araskog has announced he may try to implement company restructurings or asset sales. The announcement boosted ITT's shares by $3.375 to close on the New York Stock Exchange at $69.875. Analysts have noted that ITT's stock seems undervalued, and many people have been waiting for Araskog to implement new plans. ITT will receive $1 billion in cash from Alcatel Alsthom in late June 1992 with two additional payments totalling $1.6 billion scheduled for 1993 and 1994. It will also receive 9.1 million newly issued Alcatel shares worth $1 billion that it will hold for five years. The shares represent 7 percent of the company, making ITT the second largest shareholder behind the French Bank, Societe Generale.

Electronic components, not elsewhere classified, Stocks, Securities industry, Compagnie Financiere Alcatel, Sales, ITT, Financial Analysis Software, Stock, ITT Corp.

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AT&T sets up unit to manage computer network for clients; concern faces major rivals in push for larger stake in 'outsourcing' business

Article Abstract:

AT&T plans to launch an AT&T Solutions division that will offer outsourced computer services to large and small businesses. The new AT&T division will compete with several other companies that are already well-entrenched in the outsourcing services market, including General Motors' Electronic Data Systems subsidiary, IBM and Andersen Consulting. Industry analysts report that the market for these types of outside network management services is approximately $60 billion world-wide. AT&T Solutions will assign 5,000 employees to the new venture, which already has 100 corporate clients and over $1 billion in back orders. Former Unisys executive Victor Millar is to be the president and CEO of AT&T Solutions. He also brings expertise from his years at Andersen Consulting. Richard Rossett is to be the chief operating officer at the new division.

Computer Systems Design and Related Services, Contract Software & Services, Computer programming services, Planning, Services, Software support services, Company services, Outsourcing, Systems integration, Company business planning, Computer systems integration, AT&T Solutions Inc.

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Lucent profit surges 31%, delighting analysts

Article Abstract:

Lucent Technologies announced a 31% profit gain for the 1st qtr 1998, excluding charges. The company also said it will soon appoint Pres and CEO Richard McGinn as chairman to succeed Harry Schacht. Net income totaled $792 million in the qtr, down from $859 million in the 1st qtr 1997, but the amount would have reached $1.12 billion if not for one-time charges. Revenue from $7.94 billion in the 1st qtr 1997 to $8.72 billion. This 9.8% raise would have totaled 16% excluding businesses that Lucent sold or merged into joint ventures in 1997. Lucent's diluted per-share earnings of $1.21 a share represented a one-time, $427 million aftertax charge of $427 million for discontinuing research-and-development work following the company's acquisition of network server company.

Lucent Technologies Inc., LU, Company sales and earnings, Company earnings/profit

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