Alcatel and Lucent in Merger Talks

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6:00 am on March 25, 2006 | Category: Business, Corporate

Lucent Technologies is reportedly in talks with French-based Alcatel, regarding a merger that would unite two of the world’s largest telecom equipment makers, and create a transatlantic distribution network.

The two companies engaged in failed merger talks about five years ago, but are now revisiting the idea as a “merger of equals.”

Sources say, however, that the final structure of any deal would more likely resemble a takeover of Lucent, which is valued at US$13 billion, by the $20 billion Alcatel.

Lucent shareholders are reacting positively to the possibility of a deal, with the company’s shares jumping nearly 10% in New York on Friday.