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"The difficulty with the move, I suspect, is that it's still not a complete divestiture," Professor Geer said.
The officials said a complete divestiture of the electronics systems could involve up to $4 billion of systems -- nearly half the value of the deal.
The firm is also mulling a complete divestiture of its holdings in Ford, which still account for more than 6.0% of the company's shares outstanding, even after the recent sale.
But we worry that anything short of complete divestiture will not produce a truly conflict-free portfolio.
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In comparison, the medical devices division saw a 9% decline in sales due to the stronger dollar and the completed divestiture of a diagnostics business.
Under state law, the owners have until 2004 to complete the divestiture.
The company said it expects to complete the divestiture to Apartment Investment and Management Company, or AIMCO, by early next month.
Lucent expects to complete the divestiture by the close of its fourth quarter, which ends on Sept. 30.
AT&T had been making no headway in negotiations with Time Warner Entertainment, which had the leverage in any buyout since AT&T had to complete a divestiture within a year of closing its acquisition of MediaOne.
This time lag is a function of the length of time it takes the firm to complete the divestiture and the type of performance variable that is being utilized.
The order gives the companies until May 19 , 2001 to complete the divestitures.
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