Lucent, Alcatel said in merger talks
Alcatel is reportedly in talks to acquire U.S. telecom equipment manufacturer Lucent Technology for more than $12 billion.
The New York Times said Friday that sources described the potential deal as a merger between equals that could lead to an overall shakeout in the communications-equipment sector.
The talks come in the wake of this month's blockbuster merger of AT&T and BellSouth and five years after Lucent and Alcatel failed to consummate what would have been a $22.8 billion merger.
Lucent has been struggling against stiff competition in the United States and flagging prices for fiber-optic cables; however, its widely-used CDMA (Code Division Multiple Access) cell-phone technology would compliment Alcatel's strength in broadband and Internet Protocol Television gear.
The Times said neither company planned any comment on the talks until they run their course.
Copyright 2006 by United Press International
