Report of Organizational Actions Affecting Basis of Securities

Transcription

1 Form 8937 (December 2C11) Departmem of the Treasury lntemal Revenue Service Report of Organizational Actions Affecting Basis of Securities I>- See separate instructions. OMS Nc Issuer's name 2 Issuer's employer identification number (EINI 4 Telephone No. ol contact 5 address of contact 6 Number and street (or P.O. box if mail is not delivered to street address) ot contact 3400 w. 8 Date of action 9 Classification and description 10 CUSIP number 14 Describe the organizational action and, if applicable, the date of the action or the date against which shareholders' ownership is measured tor the action Ill>- See attachment 15 Describe the quantitative effect at the organizational action on the basis of the security in the hands of a U.S. taxpayer as an adjustment per share or as a percentage of aid basis I> See attachment ~~~~~ Describe the calculation of the change in basis and the data that supports the calculation, such as the market values of securities and the valuatior> dates I> See attachment ~~==~~ For Paperwork Reduction Act Notice, see the separate Instructions. Cat No P Form8937 ( )

2 foon 8937 (Rev \ ~ "' ---~ ~ Send Rmn 8937 (including ac<:ompanxina stat<l!ments!lo: Department of the> Tr!laliu'} Internal Revenue Service Qm!M, UT

3 Internet Communication Disclaimer: 2013 lrs FORM PREFERENTIAL SUBSCRIPTION RIGHTS ISSUANCE INFORMAT!ON FOR CERTAIN SHAREHOLDERS IRS Form 8937 "Report of Organizational Actions Affecting Basis of Securities" is being made available by Akatel lucent pursuant to Internal Revenue Code Section 6045B, which requires issuers to report certain organizational actions that affect the U.S. tax basis of securities in the hands of shareholders and additional information about the effect on basis. The purpose of this disclosure is to assist holders of ordinary shares and ADRs in determining the impact of the organizational action discussed herein on the tax basis of their ordinary shares and ADRs of Akatei-Lucent. However, the information contained in this disclosure does not constitute tax advice and does not take into account any shareholder's specific circumstances. Shareholders are urged to consult their own tax advisor regarding the US tax consequences ofthe Rights Issue and allocating basis of the ordinary shares or ADRs to the Rights. This lrs Form 8937 and attachment in respect of the Rights Issue completed in 2013, are available for download on Akatei-Lucent website, in Investor Relations section, and will be available until IRS CIRCULAR 230: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in the communication {including any attachments) is not intended or written to be used, and cannot be used, for purposes of (i) avoiding penalties under the U.S. Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

4 INTERNAL REVENUE SERVICE ATTACHMENT TO FORM 8937 ALCATEL-LUCENT, PARJS, FRANCE Please find below information as per Part I and Part II of the IRS FORM 8937 completed and published by Alcatel-lucent, Paris, in January Box 10: ALU Euronex ISIN: FR ALU NYSE IS IN: U$ Atcatei-Lucent (the "Company") issued to its registered holders of ordinary shares ("Existing Ordinary Shares") as of November 18, 2013, preferential subscription rights {"Rights") to buy new ordinary shares. The subscription price for the new ordinary shares (the "New Ordinary Shares") was set at 2.10 per share on the basis of 8 New Ordinary Shares for 41 Existing Ordinary Shares. The subscription period for the Rights (the "Subscription Period") started on November 19, 2013 and ended on November 29, Box 15: The average opening price of the Rights during the Subscription Period was determined to be 0.166, and was less than 15 per cent ofthe fair market value of the ordinary shares with respect to which the Rights were issued. As a result, the Rights will be allocated a zero tax basis unless a holder affirmatively elects to alloc<.lte tax basis in the case of Rights. in proportion to the relative fair market value of the ordinary shares and the Rights associated therewith. The irrevocable election must be made in the shareholder's timely filed U.S. federal income tax return for the taxable year in which Rights were received. Accordingly, using the fair market value of the Rights as determined during the Subscription Period, each U.S. Holder that makes this election must allocate 5.37% of its basis in its ordinary shares to the Rights and reduce its basis in its ordinary shares by an equal amount. Expiration of the Rights If a U.S. Holder allows the Rights to expire without selling or exercising them and does not receive any proceeds, the allocation of 'oasis to the Rights will be disregarded.

5 Box 16: The average opening price of ordinary shares during the Subscription Period of November 19, 2013 through November 29, 2013 was The average opening price of the Rights was Each right represented approximately 5.37% of the combined average opening price of an ordinary share and the Right during the Subscription Period. Accordingly, using the fair market value of the Rights as determined during the Subscription Period, electing U.S. shareholders of Rights must allocate 5.37% of their basis in their ordinary shares to the Rights and reduce their basis in their ordinary shares by an equal amount. Box 17: U.S. Internal Revenue Code Sections 305(a) and 307(b), and Treasury Regulations Sections l(a) and Box 18: A U.S. Holder will recognize a loss on the sale or other disposition of the Rights to the extent such hoider's tax basis, if any in the Rights exceeds the U.S. dollar value of the amount realized from the sale or other disposition. Expiration of the Rights If a U.S. Holder allows the Rights to expire without selling or exercising them and does not receive any proceeds, the holder will not recognize any loss upon expiration of the Rights. Box 19: The irrevocable election described in Box 15 above must be made in the shareholder's timely filed U.S. federal income tax return for the taxable year in which the Rights were received, in respect of all Rights received by the holder.