Investors Say Oui to Alcatel/Lucent

It's on.

Alcatel (NYSE: ALA; Paris: CGEP:PA) and Lucent Technologies Inc. (NYSE: LU) investors have voted in favor of the duo's merger at their respective meetings in Paris and Wilmington, Del.

About one hour after the meeting began (11 a.m. Eastern), and only a matter of minutes after voting closed, Lucent told its investors that votes representing about 2.3 billion, or 51.97 percent, of outstanding shares have voted in favor of the transatlantic marriage.

Lucent needed only a majority in favor of the deal to have the merger resolution passed.

Then, just minutes later, Alcatel's shareholders voted in favor of all the necessary resolutions in Paris.

The coffee and croissants must have been OK, then. (See The Pastry Factor.)

Now the two companies are in the final stages of creating a giant telecom vendor with annual revenues of $25 billion. The two companies have said previously they hope to close the merger by the end of this year. (See Alcatel/Lucent Decide on New Name and Alcatel, Lucent Seal Deal.)

When the two companies first announced their intention to merge, the duo had a combined market capitalization of $36 billion. But both vendors have seen their share prices slump since the April announcement –- Alcatel's from $15.40 to $11.80 and Lucent's from $3.05 to $2.26 – and now their combined valuations are $26.33 billion, a fall of nearly 27 percent.

— Ray Le Maistre, International News Editor, Light Reading

OptixCal 12/5/2012 | 3:41:42 AM
re: Investors Say Oui to Alcatel/Lucent Hmm...maybe two negatives DO make a positive.
zoinks! 12/5/2012 | 3:41:32 AM
re: Investors Say Oui to Alcatel/Lucent wee wee

The only benefit to this merger will be the continued move of Alcatel and Lucent R&D and support operations to lowcost development sites in India (Lucent), Algeria (Alcatel), Slovakia (Alcatel), Russia (Alcatel) and Shanghai (Alcatel ASB).

NA-based employees in Ottawa, NJ, Plano, Carlsbad and the few remaining dregs in MA are not going to be heavily incented to work. The socialists in France will sit in their offices 35 hours a week while their socialization committee union heads politic to save their jobs. The Alcatel people in Germany are screwed no matter what, primarily because they have been getting their work stolen from them for years by the hommeboys in France.

I can just picture the disconnected and title hungry VPs and CTO's in the various "integration teams" all pontificating and spouting their visions, with nary a clue as to how to really make it work.

I've seen it firsthand before in a simiar merger and it is rather comical to see these people play their power games, who hold their positions mainly through "promotion by attrition" and downright bullsh*tting their way to the top

Of course, I am perfect. ;^)
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