Lucent's Woes Stretch Overseas - TheStreet

The profit warning released yesterday by Lucent Technologies

(LU)

hammered Israel's most talked-about high-tech deal --

Chromatis Networks

-- to the tune of 20% overnight, dropping its market value from $4.5 billion in June to $1.79 billion.

In June, Lucent announced that it was buying Chromatis, a startup developing equipment for optic metro networks, for 78 million shares, then at $58.

Chromatis founders Orni Petruschka and Rafi Gidron each received 6.37 million Lucent shares, worth $382 million at the time. The value of the deal has contracted by 60%, or $2.7 billion, to $1.79 billion, meaning their interest has shrunk to $153 million each.