New York — Another earnings warning from Nortel Networks, one of Agere Systems' biggest customers, left shares of the Lucent Technologies spinoff trading only slightly higher as Agere joined the Big Board.
The stock opened at $6.06 after Agere Systems priced 600 million shares at $6 each through underwriters led by Morgan Stanley Dean Witter. The shares closed at $6.02.
"The opening shouldn't be a surprise with 600 million shares anyone who wanted the stock got it," said Irv DeGraw, analyst at WorldFinanceNet.com. "The stock will value rapidly and fully. It's being introduced following Nortel's warning so the deal reflects Lucent's needs, not Agere's."
Nortel, the Canadian telecommunications equipment maker, said late Tuesday that it would lose even more money this quarter than it told investors just last month. It said cuts in capital spending by phone firms are hurting demand for its products.
Reduced demand for Nortel equipment means the Canadian company may be less likely to buy Agere's products. Agere makes optoelectronic components for equipment used in communications networks, as well as integrated circuits for use in computers and communications equipment.
"The stock is also getting hurt by Lucent, which is down again today," DeGraw said. "I don't think anyone liked Lucent's shift of debt onto Agere, but that's why the price was knocked down to $6 a share."
Lucent shares ended down 12.2 percent at $10.27, while Nortel fell 16.5 percent to $14.
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