Alcatel-Lucent reviewing future of enterprise unit


Paris-based communications giant Alcatel-Lucent has announced it is reviewing the future of its enterprise business.

The company said it is “exploring strategic options to enhance the future opportunities” of the unit, with all avenues being considered, including a sale to a third party.

HP, Cisco and Siemens Enterprise Communications are all thought to have been involved in recent discussions over a possible sale.

Although the unit is said to be worth at least €1 billion, it accounts for less than 10 per cent of Alcatel’s annual revenue, and does not align with its primary business of selling network equipment to telecoms operators.

As well as office telephones, the enterprise unit sells switches and other equipment to businesses, in addition to hardware and software used in call centres.

Alcatel has said it is holding meetings with employee representatives of the enterprise unit, and was keen to stress that no decision has yet been made.

With operations in more than 130 countries, Alcatel-Lucent achieved revenues of €16 billion in 2010.

The company is seeking to divest assets as part of a three-year turnaround plan.