DJ Alcatel Cut To Underweight At Lehman Brothers

09/14/06 - Dow Jones Newswires

DOW JONES NEWSWIRES

Lehman Brothers downgraded French telecommunications equipment provider Alcatel SA (ALA) to underweight from equal-weight, citing concerns that European wireline operators will defer the purchase of new equipment in the coming quarters.

The broker told clients that existing concerns over the merger with U.S. rival Lucent Technologies Inc. (LU), declining market share in mobile and a lack of real wireline consolidation were also key factors in the downgrade.

"We expect the integration of Lucent to reduce visibility into underlying financial trends and lead to some disappointment around the pace of integration and cost reduction, resulting in weak news flow from the company itself," Lehman concluded.

-Aude Lagorce; 415-439-6400; AskNewswires@dowjones.com

(END) Dow Jones Newswires

September 14, 2006 06:11 ET (10:11 GMT)

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