Shares in Italian cable and fibre-optics firm Pirelli fell to a new year low today on press reports it may have made a $4 billion bid for Lucent's fibre-optic division following the breakdown in talks between Lucent and France's Alcatel.
Pirelli had no comment to make on the rumours.
Sector sources, however, noted that the price touted was unrealistic in light of conditions in the US fibre-optic cables market where Pirelli already has a 20 per cent share.
By 9.05 a.m. today Pirelli stock had pared some losses, trading 1.22 per cent lower at euro 3.47after dipping to euro 3.39, in volume of some five million shares against an average of 10.5 million in the last 30 sessions.
In past weeks, Pirelli chairman and chief executive Mr Marco Tronchetti Provera has said his group was interested in Lucent's fibre optics division. But after the collapse of the merger talks with Alcatel on Tuesday, Pirelli had no comment to make on whether it was still interested in the division.