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Lucent sets ratios for Agere stake spinoff

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CIOL Bureau
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MURRAY HILL: Telecommunications equipment maker Lucent Technologies Inc. on

Monday set the share ratios for the spinoff of its former optical components

unit Agere Systems Inc.

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Murray Hill, New Jersey-based Lucent said one share of Agere Class A common

stock will be issued for every 92.768991 shares of Lucent common stock, and one

share of Agere Class B common stock will be issued for every 3.779818 shares of

Lucent common stock.

Lucent spun off Agere in an initial public offering last March, but still

owns an equity stake of about 58 percent in the company. The spinoff of the

remaining shares had originally been planned for last fall, but was delayed due

to the slowdown in the telecom sector because Lucent did not meet certain

financial requirements under its bank agreements.

Both A and B shares of Agere will be distributed to Lucent shareholders as a

tax-free dividend, Lucent said. The distribution is planned for June 1 to the

holders of Lucent common stock as of the close of business on May 3.

Fractional shares will be distributed in the form of cash, which may be

considered taxable income, Lucent said.

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