Lucent Spins Off in Flurry of Stocks

Charles T. Troy

MURRAY HILL, N.J. -- Like a modern-day Johnny Appleseed, AT&T scattered 525 million shares of Lucent Technologies stock on the investment community to mark the completion of Lucent's spin-off from AT&T. In what was described as the largest US stock distribution ever, more than 3 million shareowners received copies of the new certificates that featured sketches of an 1880 Alexander Graham Bell patent and the new company's logo.

The share distribution was the last step in finalizing the split. The certificates were given to holders of AT&T stock at the rate of 0.324084 shares of Lucent for each share of AT&T. Checks were issued for fractional shares and to those who owned three or fewer shares of AT&T.

Lucent comprises the following units: Network Systems, Consumer Products, Business Communications Systems, Microelectronics and Bell Laboratories. Altogether, the $22 billion company employs more than 100,000 people.

Microelectronics includes the Optoelectronics Unit, which produces lasers, detectors, lithium niobate devices, receivers, transmitters and optical amplifiers. This unit is the world's leading supplier for single-mode fiber applications.

Optoelectronics' Product Management and Marketing Director Greg Dougherty told Photonics Spectra that the split from AT&T could be very good for the group in terms of new markets. Not long ago, AT&T was the main customer, but now more than 50 percent of revenues come from outside the company.

Dougherty said his goal is to identify businesses and markets that are both growing and potentially profitable. "We would like to expand our piece of the pie," Dougherty said. "There are so many things that we can do; the challenge is to see what we can do profitably."