Lucent spin-off unlikely to be last
I fell into a burning ring of fire
Insiders at Lucent (ticker LU) tell us that the spin off of its communication systems division yesterday is unlikely to be the last, and that the word is that some much more aggressive action can be expected in the future. In fact, the CEO, Rich McGinn, was asked in an internal broadcast whether other parts of the business would be spun off in the near future. The reply: "We don't have any other announcements to make at this time." Its PBX division was not performing very well, according to our source, and instead of its plans to dominate the whole arena of communications technologies, it is entirely possible that Lucent may spin off its microelectronics group and sell its manufacturing locations, contracting out the actual nuts and bolt stuff. That would lead Lucent (symbol Ring of Fire), to become a gigantic R&D and design house, with network services and consulting in there too. Well, that's the word inside Lucent. No doubt its lips are sealed as far as the outside world is concerned. ®
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