Feeds

Alcatel, Lucent mull merger

But a deal is unlikely to come off

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

Alcatel has held talks with Lucent Technologies concerning a possible acquisition or merger of the two companies.

According to a report in Wall Street Journal wider discussions flowed out of negotiations about the sale of Lucent's fibre-optic business to Alcatel, which debt-ridden Lucent values at $6 billion.

The paper quotes unnamed people familiar with the situation who told it of the talks but also suggested the chance of a deal are slim. Among other reasons putting together a package attractive to Lucent shareholders would be difficult in current market conditions.

Alcatel and Lucent both have market capitalisation of around $35 billion. However French-based Alcatel has weathered the fall in spending on telecommunications equipment far better than Lucent, which earlier this week announced that it lost $3.69 billion in its second quarter.

Lucent, an AT&T spin-off, has been hit by a string of disasters - last year it issued a steady flow of profit warnings, ousted its chief executive Richard McGinn, and was forced to restate its fourth quarter sales. In an attempt to turn around its business Lucent has launched a restructuring program, which involves the loss of a total of 16,000 jobs at the firm. ®

Related Stories

Lucent 'severely impacted' by Winstar bankruptcy
Lucent to restate sales and cut 10,000 (full-time) jobs
Lucent denies bankruptcy rumours
Blunder cuts lucent Q1 sales by $125 million

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.