Lucent, Alcatel abandon merger talks

RUNNING THE SHOW The combination, had Lucent agreed to cede control, would have helped stem the more than US$4 billion in losses it suffered in the first half

BLOOMBERG, MURRAY HILL , NEW JERSEY

"The company has got to focus on basic operations."

In Paris, Alcatel said it will have a second-quarter loss of about 3 billion euros (US$2.6 billion) this year after taking a one-time charge for the declining value of some investments.

The company will concentrate on three businesses -- optics, phone networks and space technology -- to shield it from slackening demand from phone companies and "current market uncertainties," the company said.

It is selling cable unit Nexans SA in an initial public offering, and is farming out mobile phone production to Flextronics International Ltd.