Alcatel Undersea Cable Division Said to Attract Investors

Alcatel-Lucent SA, the French phone-equipment maker reorganizing to stem losses, is looking to sell its submarine-cable business by next quarter after attracting interest from potential buyers, according to people familiar with the matter.

Investment funds Permira Advisers LLP and PAI Partners SAS, as well as French sovereign fund FSI, are weighing bids, said the people, asking not to be identified because the discussions are private. France Telecom SA said it makes “industrial sense” to own the unit, which Kepler Capital Markets says may fetch as much as 800 million euros ($1.1 billion).