Feeds

Alcatel in ‘advanced talks’ to buy Lucent

$40bn deal on the cards

  • alert
  • submit to reddit

Top three mobile application threats

France's Alcatel has inched nearer to its buyout of Lucent Technologies, a deal now worth more than $40 billion.

That's according to the New York Times, which today reports that the two are in "advanced talks" over the deal, which will be almost a total stock agreement.

The agreement would represent a 20 per cent premium over telecoms equipment maker Lucent's current $33.5 billion value.

The talks between the telecom equipment giants have been going on for more than a month, but have now reached a crucial stage, executives close to the discussions told the newspaper. A decision as to whether the companies will get as far as proceeding with "normal negotiations" is expected within the next week.

The agreement could be announced as early as the start of June - and the odds of the deal going ahead were said to be 50-50.

The situation has sprung from Alcatel's original talks with Lucent to buy its fibre-optic cable business - Lucent was hoping to shift this for more than $5 billion to shake off some of its debts. Alcatel would still be interested in this part of the business if it does not manage to buy the whole of Lucent, the NYT reports.

Lucent has seen its share price take a battering over the last 18 months due to managerial and sales problems. At its high in December 1999 it was $79.58. This afternoon its share price was up 6.6 per cent at $10.46.

"Alcatel would inherit a lot of headaches," James Kelleher, an Argus Research analyst, was quoted as saying. "It's not entirely clear if the gain outweighs the pain." ®

Related Link

New York Times article

Related Stories

Alcatal, Lucent mull merger
Lucy 'severely impacted' by Winstar bankruptcy
Lucent denies bankruptcy claims

3 Big data security analytics techniques

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.