Shares of Alcatel-Lucent (NYSE: ALU) were up 10% on Friday, thanks to news that the company had obtained a $2.1 billion senior secured credit facility from Goldman Sachs (GS 1.79%) and Credit Suisse (CS). While this is excellent short-term news for the company and for investors, as it will allow Alcatel to refinance existing debt and cut costs, Motley Fool tech and telecom analyst Andrew Tonner fears that this is only buying time for the company. Cost savings won't change the overall headwinds the business is facing today as a whole.
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Alcatel-Lucent spiked 10% Friday. Is this a resurgence?
Andrew Tonner has no positions in the stocks mentioned above. Brendan Byrnes has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Goldman Sachs Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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