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Lucent makes spin-off plans

Lucent Technologies, Murray Hill, NJ, has announced plans to spin off its PBX, SYSTIMAX structured cabling and LAN-based data businesses to shareowners, forming a separate company that will focus dire...


May 1, 2000  


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Lucent Technologies, Murray Hill, NJ, has announced plans to spin off its PBX, SYSTIMAX structured cabling and LAN-based data businesses to shareowners, forming a separate company that will focus directly on the enterprise networking market.

The new company will start out with an $8 billion business and is expected to be accomplished through a tax-free distribution of shares to Lucent’s shareowners. Lucent anticipates the spin-off to be completed by the end of September.

“With this move, Lucent will focus on extending its leadership in the highest growth areas of communications networking,” said Richard McGinn, Lucent Technologies Chairman and CEO. He said Lucent would concentrate greater resources on areas like optical networking, Internet infrastructure, wireless, semiconductors and optoelectronics.

McGinn also announced that Donald Peterson, currently Lucent Executive VP and CFO, will become president and CEO of the new company. Henry Schacht, a current member of the board of directors, will become the company’s new chairman.


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