LUCENT completes sale of operations in Oklahoma and Ohio
Tuesday, September 4th 2001, 12:00 am
By: News On 6
MURRAY HILL, N.J. (AP) _ Lucent Technologies has completed its sale of manufacturing operations in Oklahoma City and Columbus, Ohio, the company announced Tuesday.
Toronto-based Celestica is paying $570 million in cash for the property in Ohio and the inventory and equipment at both plants.
Celestica is to supply the struggling Murray Hill-based telecommunications giant with switching and access products made in Oklahoma City and wireless equipment made in Columbus.
Lucent, which employs 2,700 workers at its Oklahoma City facility, said the contract could be worth $10 billion. The deal was announced in July.
Lucent, the once high-flying AT&T spinoff, has been losing money and seeing its stock plummet in recent months. In July, the company posted a $3.25 billion third-quarter loss.
To try to turn the business around and get quick cash, the company has been trying to sell plants to contractors.
Lucent is also eliminating dividend payments to investors.
In early trading Tuesday on the New York Stock Exchange, Lucent was down two cents to $6.80. Its 52-week high was $42.71.
Celestica was trading at $34.20, down $2.20. The Canadian company's stock has also plunged in recent months from a 52-week high of $87.