Lucent throws $4.5bn down the pan

Not the wisest investment decision in history...

Not the wisest investment decision in history...

Ailing telecoms equipment manufacturer Lucent has decided to shut down Chromatis Networks, an Israeli company it bought just one year ago for the small matter of $4.5bn. At the time the deal was struck, Bob Barron, CEO of the optical networking specialist, predicted his company would bring in several hundred million dollars in business for Lucent. But according to the FT, it has in fact attracted just two customers in the last year. The move comes as further embarrassment for a company desperately trying to turn its fortunes around. Earlier this month, Lucent - which made a loss of $3.25bn in its latest quarter - withdrew from the European GSM market as part of its ongoing strategy to focus on the top 30 telcos around the world. As a cutting edge technology outfit, Chromatis didn't fit into those plans. Around 150 people are expected to lose their jobs at Chromatis - a mere drop in the ocean for Lucent, which is in the process of shedding 40,000 staff. For related news, see
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