Agere goes this time?

March 24, 2001: 7:00 a.m. ET

Lucent unit Agere Systems tries to price once again after slashing offering

NEW YORK (CNNfn) - Once again the Nasdaq composite index will be the key to the initial public offering market and with just one deal scheduled this week, new-issues investors should be hoping for some market stability.

The only name on tap for the week is the same as the big name the week before. Agere Systems Inc., led by underwriter Morgan Stanley Dean Witter, is scheduled to price, but this time the deal is packing a lot less punch.

The microelectronics unit of Lucent Technologies (LU: Research, Estimates) now expects to raise $3.9 billion with its IPO, instead of the $6.5 billion previously anticipated. Agere slashed its price range last Thursday to between $6 and $7, from $12-to-$14, a sign the underwriters are concerned about getting the deal done. The company also bumped up the number of shares on offer to 600 million from 500 million.

According to analysts, market activity next week should factor into whether or not Agere gets off the ground.

	IPO ON TAP THIS WEEK
		Agere Systems, bumped from last week Agere (AGR.A) 600M @ $6-7

"I would look for (Agere) to go out if indeed we see the Nasdaq stabilizing, especially in the semiconductor sector," said Corey Ostman, co-CEO of AlertIPO.com. "If we see the same see-saw action, then it's questionable."

"(The underwriters) would like to bring it out, but it's very tough if semiconductor stocks are getting hammered," he said.

Allentown, Pa.-based Agere designs and makes optoelectronic components for communications networks and integrated circuits for computer equipment, and is a leader in sales of communications semiconductors.

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Agere still plans to trade under the New York Stock Exchange symbol "AGR.A."

Parent firm Lucent will be spinning off the unit after the IPO, and Agere no longer will be a wholly-owned subsidiary. Lucent plans to distribute all the shares it owns to shareholders by Sept. 30. After the IPO, Lucent will hold 63.3 percent Class B shares and 87.3 percent of voting power.