Lucent Loses Its Luster

Lucent (LU Quote) loyalists are looking at little reward as the last chapter looms.

Alcatel's (ALA Quote) board is expected to iron out the last details of its $13 billion "merger of equals" acquisition of Lucent this weekend, though neither camp is offering any guarantees.

But one thing seems certain: long-suffering Lucent shareholders aren't going to get the big payoff they have waited for so patiently. Barring the arrival of a highly motivated outside bidder, Lucent's lengthy slide seems to have earned it little or no premium above the company's current stock value.

The postboom era hasn't been all that fruitful for Lucent. The stock has been stuck below $5 for more than three years. And at this point, Lucent is facing a wall rather than a lot of encouraging options. ...