Loss-making telecom equipment maker Alcatel-Lucent plans to raise €955 million ($1.3 billion) from shareholders and $750 million from a high-yield bond to cut debt and drive what its boss has called a last-ditch effort to save the group.

Chief executive Michel Combes launched his “Shift” plan in June, including 10,000 job cuts, €1 billion of cost savings and €1 billion of asset sales. He is aiming to revive a firm which has struggled against low-cost Asian competitors as well as larger rivals Ericsson and Nokia since its creation in 2006.

The Franco-American company said yesterday it planned to sell new shares at €2.10 apiece, a hefty discount to the current share price.

At 1315 GMT, Alcatel-Lucent shares were down 2.6 per cent at €2.89, after falling as much as 9.3 per cent. – (Reuters)