Networking giant Alcatel-Lucent said in a press release Monday morning it will provide network optimization services to affiliates of China Mobile and China Unicom. Financial terms were not released. As of Friday's close, China Mobile and China Unicom boasted market caps of $290 billion and $22.3 billion respectively. Alcatel said it will "provide tailor-made service solutions to help... enhance network coverage and performance and improve resource utilization" for China Mobile affiliates in Shanghai, Guizhou and Shanxi provinces and for a China Unicom affiliate in Inner Mongolian province, with an expected completion date at the end of 2007. Alcatel shares have fallen more than 36% YTD, as the company has struggled in the wake of its cross-Atlantic November 2006 merger with Lucent.
Sources: Press Release, Thomson Financial News, MarketWatch [edited press release]
Commentary: Alcatel-Lucent: Exercising The Power Of No • Alcatel-Lucent Cuts Outlook, Shares Drop • Still Time to Pull the Switch On Telecom Equipment?
Stocks/ETFs to watch: ALU, CHL, CHU. Competitors: CSCO, ERIC, NT. ETFs: BDH, IGN
Earnings call transcript: Alcatel-Lucent Q2 2007
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