Lucent Ready to Snag Verizon Deal

A loud sales win with an old pal could help Lucent (LU Quote - Cramer on LU - Stock Picks) drown out the negative noise for a while.

The New Jersey telecom-equipment giant is near a new supply pact with Verizon (VZ Quote - Cramer on VZ - Stock Picks). At the moment Lucent is in the final months of a three-year, $5 billion contract to supply the nation's biggest telco with wireless gear. Though people familiar with the arrangement don't yet know the timing or final terms, they are certain that Verizon's choice for the next version of the contract will again be Lucent. Verizon and Lucent reps declined to comment.

Yes, somehow -- while busily firing staff, slashing retirees' medical benefits and answering charges that it bribed Saudi officials -- Lucent has found enough time to conduct some business. A contract announcement, when it comes, should give Wall Street something positive to say about the troubled telecom-gear company. Still, some observers wonder when Lucent might expand its brief with other telcos.

On Thursday, Lucent stock surged 11 cents to $2.17.

Spending Money

With Verizon's labor agreement pretty much established and its wireless business roaring ahead, the nation's largest phone company has resumed its spending plans.

Last week, Verizon awarded Nortel (NT Quote - Cramer on NT - Stock Picks) a $1 billion contract for wireless network upgrades, a renewal of a previous contract dating back to April 2000.

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