Shares of Alcatel Lucent, the world's largest telecommunications equipment maker, surged Monday after the company was awarded a 3 year, $6 billion contract from Verizon, Inc. (NYSE: VZ) to expand the company's wireless networks.
U.S traded shares of Alcatel-Lucent surged 3.4 percent on the news, reaching $11.92 at the close of trading on the New York Stock Exchange.
The Paris-based firm will supply network equipment and software to upgrade Verizon's existing wireless infrastructure to increase its capacity, and add more data capabilities.
Alcatel's purchase of Lucent technologies created the world's largest supplier of code division multiplexing access equipment - the same technology used by Verizon wireless.
With this agreement Alcatel-Lucent continues to be Verizon Wireless's primary network infrastructure supplier,'' Verizon said in a statement.
Verizon shares fell 1.18 percent, or 45 cents to $37.67 on the New York Stock Exchange.