Lucent Plans Reverse Stock Split
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MURRAY HILL, N.J. (AP) _ Lucent Technologies said Friday it will seek shareholder approval for a a reverse stock split to boost its stock price, which has been trading below $1 for the past 30 trading days.
The company’s board of directors will seek approval for the split at its next annual meeting in February. The ratio will be set by the board at a level that would raise the common share price to a range of $15 to $25, the company said.
The shares were trading at 70 cents, down a nickel, Friday morning on the New York Stock Exchange.
Lucent’s slump has resulted in the company being below one of the continued listing standards on the New York Stock Exchange, meaning it at risk of being delisted.
Lucent, whose shares sold as high as $84 in 1999, has been badly hurt by anemic demand for telecommunications gear as telephone and Internet service providers sharply cut back on spending after unprecedented growth during the late 1990s.
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