|
||||||
Alcatel-Lucent Tie the Knot. Really!
by
Mark Evans
on Sun 02 Apr 2006 01:15 PM EDT | Permanent Link
The speculation is over: Alcatel and Lucent have officially merged (unofficially Alcatel is buying Lucent given its shareholders will have 60% of the new entity) to create a $25-billion wireline, wireless and services behemoth. It is interesting that Alcatel is purchasing Lucent at a discount to Friday's closing price. Patricia Russo will become CEO while Serge Tchuruk will be non-executive chairman. AlcaCent also plans to eliminate 8,800 jobs, or 10% of the workforce, to reduce annual costs by $1.7-billion. So can we now launch the consolidation frenzy within the $336-billion equipment industry? How long before Siemens or Nokia pursue Nortel, or Huawei takes a run at Juniper or as Om Malik suggests will Juniper take a run at Huawei? For several years, the telecom equipment market has been waiting - desperately needing? - consoliation among the large players amid fierce competition, soft margins and a dwindling customer base. Perhaps fewer players is what's needed to restore some sense of fiscal health. That said, there is some healthy skepticism emerging. RBC World Markets' analyst Mark Sue said Lucent and Alcatel have distinctly different corporate cultures and any expected synergies will likely not emerge for a year. IP Democracy also has concerns about the French ownership of Lucent's Bell Labs operation, which does work for the U.S. government and security agencies.
Comments
Re: Alcatel-Lucent Tie the Knot. Really!
by
prevacid
on Thu 24 May 2007 12:23 PM EDT | Permanent Link
Lucent now accounts for about 8% of total Juniper sales, according to Mark Sue of RBC Capital Markets. That is at risk he says, and in a note to his clients writes, “With the availability of Alcatel’s routers however we believe Lucent is increasingly likely to promote Alcatel’s routers versus Juniper’s routers. Alcatel’s family of routers has thus far won significant customers both here and abroad.”
|
My blog has moved.
Check out the new Mark Evans. It's part of my mini-blog empire that also includes All About Nortel and Twitterrati. You can subscribe to Mark Evans Tech by clicking on the RSS symbol above.
Check Out These Blogs
Search
Login
|
|||||
|
||||||