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Optical/IP

Agere Aims for $8.5 Billion IPO

Agere Systems Inc., the spinoff of Lucent Technologies Inc.'s (NYSE: LU) microelectronics division, is planning to raise as much as $8.5 billion dollars in its IPO.

That would make it one of the largest IPOs of all time, just shy of AT&T Wireless (NYSE: AWE), which raised $9 billion in April of last year.

In an updated registration statement filed yesterday with the Securities and Exchange Commission, the company stated that it plans to sell upwards of 370 million shares of stock in a price range of $15 to $20. The company would raise $5.5 billion at the lower end of that range and $7.4 billion at the top end of the range. But the investment bankers, led by Morgan Stanley Dean Witter, left room to boost the price upwards, filing for a maximum IPO size of $8.5 billion.

According to the filing, Lucent would hold on to 72.3 percent of the shares of Agere and would control 91.2 percent of the voting rights. Lucent officials have said they plan to distribute Agere shares to shareholders in late 2001.

Lucent executives are hoping the spinoff of Agere will help boost the value of Lucent stock. Many analysts believe the market had discounted the value of Agere within Lucent (see Analysts to Investors: "Buy Lucent" ).

Agere sells a large number of components for the communications industry, including integrated circuits and optoelectronics components such as lasers and integrated DWDM (dense wavelength-division multiplexing) modules. For the year ending Sept. 30, 2000, the company reported $4.7 billion in revenue and a loss of $76 million.

Agere had filed a preliminary prospectus in December (see Lucent's Agere Files for IPO), but that filing included few details and pegged the IPO at a token amount of $100 million.

-- R. Scott Raynovich, executive editor, Light Reading http://www.lightreading.com
rafaelg 12/4/2012 | 8:56:07 PM
re: Agere Aims for $8.5 Billion IPO Don't expect everyone to be waiting at the door to buy Agere with a 91% of voting rights for LU!
Agere wont be totaly spun from it's anchor. It's just another way LU is raising money for more acquisistions which it can't do right now!!!
joeysmith 12/4/2012 | 8:55:57 PM
re: Agere Aims for $8.5 Billion IPO Hard-working, earnest people whose start-up companies get trashed beause they a) don't buy advertising from LightReading or b) aren't a Lightspeed portfolio company: 2,371

...inclduing Lucent, Ciso and Nortel employees: 507,322

Readers who read LR misrepresentations about their companies and have the guts to rise up, reveal the truth and protect their companies and fellow employees: 3

Companies that subsidize LR's attacks on other companies through advertising dollars: 17

Challenging Steve Saunders and Lightspeed-backed LR in the name of accurate reporting: priceless

The truth will set you free. Can anyone else come forward with the truth please?

Thank you!
joeysmith 12/4/2012 | 8:55:57 PM
re: Agere Aims for $8.5 Billion IPO # of vc's working 24x7 to build the networks of tomorrow: 97

VC's who allow their portfolio companies to get trashed by Lightspeed-backed LightReading: 17

VC's who owe it to their portfolio companies to challenge this arrangement: 17

Likely shame of a VC who backs Lightreading when you look across at me at the upcoming Robbie Stephens dinner: incalculable

The truth: Priceless

What do people think? Let's oncover the truth!!!

radgrad 12/4/2012 | 8:55:56 PM
re: Agere Aims for $8.5 Billion IPO This is like one of those great promotions you get when they change your title, give you more responsibility, yet no raise.

joeysmith 12/4/2012 | 8:55:55 PM
re: Agere Aims for $8.5 Billion IPO Optical and access companies advertising on LR: 17

# of these companies getting bad press on LR: 1

Probably monthly cost of a banner ad on a website: $35,000

Ethical value of "hush money": $0

The truth: priceless

My partners and I ask all fair-minded people in this inudstry to rise up and uncover the truth. Make yourself and your companies proud! If you sponsor LR, do the right thing!!!

Thank you!
rafaelg 12/4/2012 | 8:41:42 PM
re: Agere Aims for $8.5 Billion IPO This is TRUTH...

Author: rafaelg Number: 1
Subject: AGERE ANYONE? :-) Date: 3/22/2001 12:40:08 PM


http://www.lightreading.com/do...
Author: rafaelg Number: 1
Subject: 72% and 91%? You are kidding right? Date: 2/8/2001 11:31:08 AM


Don't expect everyone to be waiting at the door to buy Agere with a 91% of voting rights for LU!
Agere wont be totaly spun from it's anchor. It's just another way LU is raising money for more acquisistions which it can't do right now!!!
http://www.thestreet.com/_spyo...

Not BAD HUH? It seems everyone is staying out of this one...

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