Alcatel-Lucent is seeking to raise around $2.7 billion in new capital in a combination of debt and new shares, as the company takes advantage of rising stock prices and optimism that it might have a chance at reversing its business situation. The plan includes the sale of 955 million Euros ($1.3 billion) in new stock at 2.10 Euros apiece. That's around 29 percent than the November 1 stock close. The company plans to sell $750 million in what it calls high-yield bonds, along with getting a 500 million Euro credit facility.

The news sent Alcatel-Lucent shares down, but that's fine because the company's stock has almost tripled since Michel Combes took over the role of CEO back in April.

"The measures we are announcing today are part of the plan to reinforce the group's balance sheet and restore competitiveness," Combes said in a statement. "Once these operations are complete, Alcatel-Lucent will be able to fully concentrate on implementing its transformation and sell assets."

Fresh assets would allow the company to compete more aggressively with Ericsson and Huawei Technologies Co for contracts.

"In the past few months we have gotten renewed confidence from customers and the market," Combes said during a conference call. "Executing on the financial part of our plan will allow us to refocus our energy on asset disposals." Reports Business Week.

Alcatel-Lucent reported a narrow loss last week in its third quarter earnings call despite rising revenues. The result is a solid proof that the company's aggressive cost cutting plan is beginning to make a difference as it attempts to regain its footing in the market. Alcatel-Lucent posted a net loss of $273 million in the third quarter, which is a far cry from the $431 million loss it posted in the year-ago during the same period.

The company's net sales increased by 1.9 percent to $5 billion. It could have increased by 7 percent if it wasn't for constant currency exchange rates.