Lucent Holders OK
Reverse Stock Split
The board has until Feb. 18, 2004, to conduct the move, which is aimed at preventing the shares, recently hovering between $1 and $2, from being delisted on the New York Stock Exchange (News - Websites) and reducing volatility in share-price moves.
The maker of telecommunications equipment said it plans a reverse stock split to lift its stock price to between $15 and $25 per share. The NYSE requires companies to maintain a 30-day average closing stock price of at least $1.
A reverse split, which creates a higher-priced share by consolidating a number of current shares, will not give Lucent shareholders more value for their investment. It would merely boost the stock price by reducing outstanding shares.