Apotheker Shapes HP Board

New Hewlett-Packard CEO Leo Apotheker(pronounced "Ahpotayker") has added five new members to the company's board.They are:
Meg Whitman,former CEO of eBay;
Patricia Russo,former CEO of Alcatel-Lucent;
Shumeet Banerji,CEO of Booz&Company;
Gary Reiner,former Chief Information Officer at General Electric and now a special advisor to General Atlantic;
and Dominique Senequier,CEO of AXA Private Equity.She has a post-graduate degree in Banking and Monetary Economics from the Sorbonne.
These appointments reflect a company seeking international and intellectual firepower,as well as executive experience at the highest level.Mr.Apotheker formerly resided in Paris,and is of German origin.
Brian Marshall,Securities Analyst at Gleacher&Company,thinks this is definitely a positive development for the company.It brings financial experience to the board.The next step is for Mr.Apotheker to come out and state his strategic vision for HP.
Hewlett-Packard(HPQ)

Alcatel-Lucent Wins Suit

Alcatel-Lucent(ALU),the world's largest telecom equipment maker,has won a patent infringement lawsuit against Microsoft(MSFT).A U.S. District Court awarded the Franco-American firm 511.6 million dollars for infringement on two patents by Microsoft.It was a rare bit of good news for ALU,which has been struggling with the late 2006 merger of Alcatel with Lucent Technologies,as well as flat demand for telecom equipment.Their situation is further complicated by the strength of the euro against the U.S. dollar.The impact of the euro-dollar rate on their revenue is very large,Chief Financial Officer Hubert de Pesquidoux said.Although ALU,led by CEO Patricia Russo,is cutting 12,500 jobs and other costs,they have had to offer discounts to maintain market share,negating the savings achieved.The company continues to provide its customers with all their hardware needs,including mobile and fixed networks,as well as Internet television.The stock has been trading below 10.00 U.S. for many months.Microsoft said it will appeal the award.

Russo Faces Restless Board

When Patricia Russo left America for Paris to head Alcatel-Lucent(ALU),she knew it would be a challenge.Mergers and acquisitions,such as the combination of Alcatel and Lucent Technologies,are rarely if ever easy.Not only are there cultural issues,but financial pitfalls as well.Alcatel-Lucent is proving to be no exception to the rule;indeed,it is ailing to a frustrating degree.Its share price was over 15.00 in January.Today,it struggles to stay above 10.00.The board of ALU has demanded changes within a month,following the telecom colossus' third profit warning.They expect Ms. Russo to deliver a restructuring plan.There is no reason why this industry leader can't be turned around.It is number one in DSL,with a 39% market share;number one in optics,with a 23% market share in Terrestrial and Submarine;and number one in long-haul microwave transmission,among other areas.With a capital of more than 4.5 billion euros,ALU has the substance.It just needs to be shaped a little better.Ms. Russo,54,is a Georgetown University graduate.She served more than twenty years at AT and T(T) and Lucent Technologies,which she helped found.I wish her much success at this crucial moment in the life of her major firm.This morning,Alcatel-Lucent shares were trading up at 10.10.

Alcatel-Lucent Upgraded

Alcatel-Lucent(ALU),the Franco-American telecom colossus,has been upgraded to "outperform" by Credit Suisse.ALU's first quarter as a merged corporation was a difficult one.Although the company sustained a net loss of 8 million euros(10.8 million dollars),its cost-cutting plans impressed Credit Suisse.Alcatel-Lucent is one of the most actively traded stocks.Its CEO,Patricia Russo,sees revenue growth for the rest of the year,based on a good flow of orders.

Alcatel-Lucent Gets Big Deal

Alcatel-Lucent(ALU),the Franco-American telecom giant,has landed a huge contract with Verizon Communications.It is a three year,six billion dollar network expansion and improvement deal.ALU offers an encyclopedic array of products and services worldwide,but its stock has been pummeled because of a low earnings forecast on account of merger costs.Late last year,the Paris-based Alcatel completed its merger with Lucent Technologies,the former Western Electric component of the old Bell System.Alcatel-Lucent is headed by American CEO Patricia Russo.