Feeds

Alcatel, Lucent mull merger

But a deal is unlikely to come off

  • alert
  • submit to reddit

Mobile application security vulnerability report

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

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.