Just nine days after announcing their advanced talks, Alcatel and Lucent board members approved the merger. This will form a truly humongous communications provider with a market cap of $36 billion, something that Alcatel Chairman and CEO Serge Tchuruk always wanted his company to be. Alcatel shareholders will own 60 percent and Lucent shareholders 40 percent of the combined company, which will have revenue of $25 billion. After a regulatory process, the deal is expected to close in the next six to 12 months. The combined company anticipates $1.7 billion in cost synergies within three years. With the current political situation in France, it will be interesting to see how the French take to Lucent CEO Patricia Russo, an American, leading the new enterprise. The new company will be incorporated in France with a new name to be determined at a later date. How does Lucatel or Alcacent sound?
To learn more about the Alcatel/Lucent merger:
- read Alcatel's press release
- see these slides for media and analysts
- read the transcript of the conference call