Alcatel-Lucent, S.A. is reportedly seeking to sell its submarine-cable business by next quarter of 2013 after attracting interest from potential buyers, according to people familiar with the matter. PAI Partners, Permira Advisers Ltd. and Fonds Stratégique d'Investissement SA are interested in acquiring the business. The sale of the unit could potentially generate from €600 million to €700 million.

Another possible bidder for the unit is France Télécom SA. Alcatel's shares rose 3.3% at €1.26.