Alcatel-Lucent SA named former Vodafone Group Plc executive Michel Combes as chief, tapping a phone-industry veteran with cost-cutting experience as the French network-equipment maker struggles to return to profit.
Alcatel-Lucent SA’s Michel Combes prompted a 19 percent jump in his company’s shares, the biggest increase in five years, by reporting earnings that helped show the French network-equipment maker can scale down to survive.
Alcatel-Lucent SA will sell 1 billion euros ($1.3 billion) of assets and slash costs by another 1 billion euros in a bid by Chief Michel Combes to turn the company around -- something his predecessors tried, and failed, to do for seven years.
Alcatel-Lucent SA is seeking to raise $2.7 billion through a combination of new shares and debt, taking advantage of a stock that has almost tripled since Chief Executive Officer Michel Combes took over to finance the network-equipment maker’s overhaul.
Alcatel-Lucent SA’s Michel Combes, who took over as chief executive officer on April 1, said he’s drafted an operational plan for the network equipment vendor and picked the management team to execute it.