$ALU Expected to Raise $1.3 Billion, Sell Assets, and Pink Slip Many in Turnaround Maneuvers

“Alcatel-Lucent SA (ALU) is closer to obtaining financing of at least 1 billion euros ($1.3 billion) from banks led by Goldman Sachs Group Inc. (GS) and Credit Suisse Group AG (CSGN) amid a wide-ranging overhaul that will probably require deeper job cuts and major asset sales, people familiar with the talks said.

With discussions still under way, Alcatel-Lucent will need to come up with restructuring plans sufficient to end a six-year streak of mounting losses to reach a deal, the people said, asking not to be identified because the talks are private. Faced with more than 2 billion euros of debt repayments over three years, the company is weighing how to use as collateral its patent portfolio, in part inherited from the Nobel Prize-winning researchers of Bell Labs, the people said.”

Full article