According to a preliminary proxy statement filed Wednesday with the Securities and Exchange Commission, the company is seeking to implement a reverse stock split of 1-for-30, 1-for-40, or 1-for-50, followed immediately by a forward stock split of the same ratio.

Shares that would be converted into less than one share in the reverse split will instead be converted into the right to receive a cash payment, the filing stated.

The company said it believes that the reverse-forward split will significantly reduce shareholder recordkeeping and mailing expenses for Avaya and provide holders of fewer than the minimum number of shares with an "efficient, cost- effective way to cash out their investments."

If a shareholder holds the minimum number - 30 if the ratio is 1-for-30, 40 if it is 1-for-40, 50 if it is 1-for-50 - or more shares at the effective time of the reverse split, any fractional share won't be cashed out and the total number of shares held by the holder won't change.

Holders of Avaya common stock will vote on the proposal at the company's annual meeting Feb. 25, 2003, in North Branch, N.J. The date of record for the meeting is Dec. 31.