France’s top 40
As we predicted. the French telecom gear maker Alcatel-Lucent is back in the top 40 of France’s blue chip companies. It has returned to the CAC 40 index, replacing STMicroelectronics, market operator NYSE Euronext said.
Alcatel, a founding member of the CAC 40 when the benchmark was created a quarter century ago, was kicked out of the index in December 2012 after its market valuation shrank after years of losses.
The outfit’s new chief executive carried out major cost cuts to try to get the company back to profitability. As a result, Alcatel’s stock has more than tripled since April as investors place hopes in a recovery for the long-struggling company.
