Lucent's initial offering nets record $3.025 billion; AT&T spinoff will be equipment maker
Article Abstract:
Lucent Technologies sold 112 shares for $27 each on Apr 3, 1996, earning $3.025 billion in the largest initial public offering (IPO) in US history. Lucent is a spinoff of AT&T, and as an independent, it is one of the largest telecommunications equipment producers in the world. The shares were offered to Wall Street firms and were not traded on the New York Stock Exchange until the day after the IPO. The sale makes 20% of Lucent available to the public, while 80% remains in the hands of investors who already own AT&T stock. These shareholders will receive one Lucent share in exchange for every three shares of AT&T stock they hold. Based on the IPO share prices, the entire company has a market value of roughly $15 billion, and analysts expect demand for the stock to drive prices higher at first. Lucent's products will include telephones, switches and computers and other equipment for the $20 billion telecommunications equipment market.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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Wireless systems put out their antennas
Article Abstract:
Telecommunications companies are scrambling to position their antennas to begin offering personal communications services (PCS). Over one hundred companies spent a collective $18 billion on licenses to offer PCS. A number of companies that won licenses in 1995 are already offering PCS for telephone, data and paging signals. The companies are planning to install a combined total of 100,000 antennas until 2005, in addition to the 17,000 existing antennas built by cellular companies since 1983. While PCS antennas can be lower than cellular antennas, they must be located much closer together, approximately one to six miles apart. The construction of more towers has been opposed by community groups. However, companies acting as middlemen stand to profit from the impasse by offering creative solutions that please both telecommunication and public interests.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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New company seeks wider role for old technology
Article Abstract:
Computer designer R. Andrew Heller announces the formation of a new company called Innovative Network Technologies Inc. The company, to be funded by $2.6 million of private financing, will be based in Austin, TX. Heller, widely known for previous accomplishments while employed by IBM, says the new company will exploit 30-year-old research involving analog communications. The goal is to develop an inexpensive, high-performance alternative to today's digital networks. Heller envisions systems capable of transmitting high-speed Internet data over telephone lines and existing building wiring, including school buildings. He says his company's technology could overcome the challenge posed by the 'last mile,' where high-speed Internet access becomes available to users not situated next to fiber optic cables.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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