Selling Lucent on the Alcatel Merger News (LU)

Now that the details of the Lucent Technologies, Inc. (LU) and Alcatel (ALA) merger have been announced it’s very easy to calculate the current value of LU shares.

Various news outlets have reported the value of the Lucent acquisition either at 13.4 billion or 13.5 billion. According to the terms of the acquisition, LU shareholders will receive 0.1952 shares of an ALA, Alcatel American depositary receipt. ALA is currently trading at $16.27. This would value LU shares at $3.17. LU is currently trading at $3.09. I am placing an order today to sell my LU shares at $3.12.

Related: Alcatel / Lucent Technologies Inc. Merger Announcement Conference Call Transcript