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.
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.