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What the papers say

Thursday 31 May 2001 10:39
Paul Donovan

Alcatel in £1.8bn restructuring as Lucent talks fail
All the papers continue with the ongoing saga of French telecommunications equipment maker Alcatel and US technology company Lucent, after their plans for a merger fell apart. The Daily Telegraph reports a profit warning from Alcatel amid "a massive restructuring bill". The Times believes the profit warning makes the company a ripe target for a takeover bid. Meanwhile the Financial Times reports that Lucent is considering finance raising options together with the sale of its optical fibre division.
 
Murdoch and Packer "misled" over One.Tel
The Financial Times, Times and Independent report that junior media moguls Lachlan Murdoch and James Packer claim to have been "profoundly misled" over the state of Australian telecommunications company One.Tel, which went into administration yesterday. The Times reports that the sons of Rupert Murdoch and Kerry Packer are set to take legal action, though against whom is not clear. Murdoch's News International and Packer's Publishing and Broadcasting have invested £330m in One.Tel.
 
Police to flood stolen mobiles with messages
The Daily Telegraph, Times and Guardian report police plans to flood stolen mobile phones with text messages, thereby rendering them useless. The plan, known as "phone bombing", involves sending text messages every few minutes saying that the phone has been stolen and should not be bought or sold.
 
Sun's warning reverberates through technology sector
The Independent and Financial Times both follow up on the reverberations from Sun Microsystems' fourth-quarter sales warning. The Independent believes that the news could have dire implications for Sun Microsystems resellers such as Computacenter and Morse. The paper says that Computacenter will issue a profits alert next month, while trading in Morse shares was choppy yesterday. The Financial Times takes the Sun Microsystems' news as a jumping-off point to suggest that Oracle could be the next big US technology company to issue a profit warning for the current quarter.
 
Best of the rest
 
The Financial Times reports:
  • The Japanese government is considering loosening immigration restrictions to alleviate a shortage of IT engineers.


The Times reports:
  • Thus, the national telecoms group, has signed a deal with Apple whereby Demon will become the default Internet access service available on every Apple computer sold in the UK.