Lucent to raise $1B in stock offer

Lucent to raise $1B in stock offer

Beset by hard times, but looking to right the company's financial ship, Lucent said last week it expects to raise $US1 billion through a private stock offering.

Lucent will make an offering of redeemable convertible preferred stock in order to increase the company's cash reserves, said Frank Briamonte, corporate media relations officer with Lucent. The stock will be offered to qualified institutional buyers, he said. Briamonte was unable to disclose further details about the plan due to legal regulations surrounding the offering.

The company reported a loss of $1.89 billion for the third quarter of 2001 on July 24. Though Lucent has enough money to complete its turnaround, the stock offering is a good opportunity to raise additional funds, Briamonte said.

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