Alcatel and Lucent to Merge

Cappella writes "It is confirmed. Alcatel and Lucent are combining to form a USD $25 billion entity. This marks a new wave of telecommunications company consolidation in the next few months to come." They first tried to work out a merger five years ago, but finally, at long last, it's come to fruition.

Comments

Re:Now Lucent is a foreign company

[Valdrax]

Actually, this is not unusual for companies that have defense contracts, even with very friendly countries. There are laws stating that companies that deal with classified material and classified projects must be American. As a result, foreign-owned companies create American shell companies to handle all the details that the parent company is not allowed to work with.

My previous employer got bought out by the Swiss, and our Defense Team became a separate corporation owned by the parent company. It's standard operating procedure.

Re: Alcatel and Lucent to Merge, form Voltron

[timbrown]

You forgot "make exceptionally good high end routers". Service routers that can work at layers 2 and 3, excellent HA capabilities that are ideal for building large MPLS clouds. Having had the pleasure of testing these babies, they rock! And they sell pretty well too.

Re:Why?

[fred911]

The french government is as protectionist has it gets. The only level field they play on is one slanted twards themselves. I surely didn't intend to sound redneck. Read more here:

http://money.cnn.com/services/tickerheadlines/djh/ 200603241445DOWJONESDJONLINE000969.htm
http://www.economist.com/displayStory.cfm?story_id =5476736
http://www.e-nough.hmdnsgroup.com/archives/001024. html

Re:How long can this consolidation go on for ?

[TheGavster]

Actually, I think it's "allocate workers and resources in the most efficient manner". Apparently Lucent isn't an efficient place to allocate workers to, thus the market has moved them elsewhere.