French telecoms equipment maker Alcatel-Lucent said it had signed a $1 billion agreement with China Mobile to provide mobile communication equipment and services.
Alcatel Lucent
"The strategic frame agreement with China Mobile reinforces Alcatel-Lucent's position as a trusted partner, as China Mobile relies upon our network solutions and services to meet their growing demand for mobile and now fixed services and in advancing China's telecommunication industry," Alcatel Shanghai Bell president Olivia Qiu said in a statement.
Alcatel-Lucent shares were up 1.97 percent at 4.41 euros in early morning trade, making the stock the top gainer on France's benchmark CAC-40 index.
Alcatel-Lucent shares have had a rough ride since the creation of the company in 2006 when French group Alcatel bought U.S. company Lucent.
Alcatel-Lucent was forced to write down 2.94 billion euros ($4.52 billion) against the carrying value of assets acquired in the merger.
The stock fell 55 percent last year and has fallen around 10 percent since the start of 2008.