Reverse Split Approved at Lucent - TheStreet

Reverse Split Approved at Lucent

The company also says it still expects to turn a profit by year's end.
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Lucent

(LU)

said its shareholders agreed to let the company do a reverse stock split that management hopes will raise the share price from about $2 now to around $15 when it's done.

The telecommunications-equipment maker also reiterated that it expects to be profitable at the end of 2003, and elevated CEO Patricia Russo to the additional post of chairman, replacing Henry Schacht, who at 68 is stepping down. Schacht will remain on the board as an outside director.

A Lucent executive on Tuesday said the company still expects to post 20% sequential revenue growth this quarter.

The reverse split, which was approved by 72% of the outstanding shares, is intended to boost a stock price that for two years has been hovering around the $1 cutoff point for continued listing on the

New York Stock Exchange

. The company has until February 2004 to carry it out.

Lucent shares were recently trading unchanged at $1.79.