Quigley Steps Down as Lucatel COO

Mike Quigley, COO of Alcatel (NYSE: ALA; Paris: CGEP:PA), will not retain that role at the French giant once it has completed its merger with Lucent Technologies Inc. (NYSE: LU), the two companies announced late Monday. (See Lucatel Updates Status.)

Quigley had been named as the COO elect of the new company, dubbed Lucatel (by Light Reading), when the marriage was announced in April this year. (See Alcatel, Lucent Seal Deal.)

Now, though, he will take a less high profile role. In a merger update statement issued late Monday, the duo announced: "Mike Quigley has decided for personal reasons to assume a different role for the combined company. He will focus on the strategic direction of the company and will become President, Science Technology and Strategy. In this capacity he will devote his attention to assuring that strategic investments align with evolving market opportunities."

Quigley will still be a member of the six-strong Lucatel management committee.

The news may not come as a surprise to many, as Quigley was reportedly angry that Lucent's CEO, Pat Russo, had been handed the role as Lucatel CEO. He was seen as Russo's lead rival for the top job. (See Lucent & Alcatel: Quigley or Russo?.)

Reports of his disgruntlement have persisted even as the merger process has forged ahead. Just two weeks ago Light Reading reported that Quigley was still smarting over the decision to bring Russo to Paris to run the merged company. (See Lucatel: Full Steam Ahead.)

An Alcatel spokeswoman says Quigley decided to step down as COO of the merged company to spend more time with his family, of whom he hasn't seen much lately as he has been flying constantly between Dallas, Alcatel's North American base, and Paris. He remains as Alcatel's COO until the merger process is completed, which is expected to happen before the end of calendar 2006.

It is not known where Quigley will be based once the merger process is complete.

The spokeswoman added that a replacement COO for the merged company will not be named. Instead, a number of divisional executives have been named, who will report directly to Russo:

  • Etienne Fouques, currently President of Alcatel Europe and South, will head up the Carrier Business Groups. These groups are: wireless, which will be run by Mary Chan, Lucent's president of mobility R&D; wireline, to be headed up by Michel Rahier, Alcatel's president of fixed communications; and convergence, to be run by Marc Rouanne, Alcatel's current president of mobile communications.

  • Hubert de Pesquidoux, currently president of Alcatel North America, will head up the Enterprise Business Group.

  • John Meyer, currently Lucent's president of global sales and services, will run the Service Business Group.

    In addition, Lucatel will have four geographic regions, each with an assigned executive to run the show.

    In addition to updating on the merger process, both Alcatel and Lucent gave preliminary financial figures for their respective fiscal quarters ending June 30. While Alcatel's numbers were in line with expectations, Lucent's were not. (See Lucent Drags Down Alcatel.)

    — Ray Le Maistre, International News Editor, Light Reading

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    flam 12/5/2012 | 3:49:15 AM
    re: Quigley Steps Down as Lucatel COO This will be fun.
    paolo.franzoi 12/5/2012 | 3:49:14 AM
    re: Quigley Steps Down as Lucatel COO
    As a person who works for a company that competes regularly with Alcatel, all I can say is:


    It will be great fighting the second team. I can not imagine a better scenario, for me.

    Scott Raynovich 12/5/2012 | 3:49:14 AM
    re: Quigley Steps Down as Lucatel COO "Personal Reasons." Interesting. As in, he was personally really PO'd ?

    jasanz 12/5/2012 | 3:49:14 AM
    re: Quigley Steps Down as Lucatel COO John Meyer is taking responsibilty for the Business Services unit... Would this mean that the professional services arm of Lucent is ahead of the professional services arm in Alcatel?
    "Ill" Duce 12/5/2012 | 3:49:11 AM
    re: Quigley Steps Down as Lucatel COO I wouldn't count Alcatel out in the battle. Lucent's services arm has some good revenue, especially in the enterprise space, but Alcatel still has the FTTX projects.

    The power actully lies within the French subordinates, not with Russo. I would think the strategy is to let Russo turn in some crappy quarters (not a stretch) then fire her and put in a Frenchman. Leverage the services revenue, cut funding to the Lucent projectws and let them die on the vine in favor of projects that are politically expedient.

    I too work for a company the competes with them and I can only say "Vive le Lucent!"

    OldPOTS 12/5/2012 | 3:49:11 AM
    re: Quigley Steps Down as Lucatel COO
    Did anyone notice the number of divisional executives that have been named, that will report directly to Russo, are very French and Not Aussie.
    She will have her challenges with the second team, besides industry competition.

    Quigly will set on the sidelines saulking and watching the battles, while focusing on the strategic direction of the company as President, Science Technology and Strategy. A job he really enjoys but with a little less prestige than he had expected.


    PS - Services is the exception

    flam 12/5/2012 | 3:49:07 AM
    re: Quigley Steps Down as Lucatel COO They've just kept Russo to make it appear that an american is at the helm. The reality will be that she'll have to wield the axe, and the french will make sure that it swings in the US.

    After a few lousy quarters (another Lucent speciality), they will of course have an excuse to get rid of her and her collection of stooges.
    jepovic 12/5/2012 | 3:49:05 AM
    re: Quigley Steps Down as Lucatel COO "After a few lousy quarters (another Lucent speciality)"

    You mean another Russo speciality, right?

    There are only winners here:
    * Russo gets another nice item on the CV, plus an astronomical compensation when she gets fired.
    * Alcatel board gets the satisfaction of eating and digesting the old American nemesis.
    * Competitors get some nice market share
    ntknow 12/5/2012 | 3:48:59 AM
    re: Quigley Steps Down as Lucatel COO Alcatel is famous for buying companies and eventually liquidating the managment of the bought out companies. That's what they did with ITT in late 80's
    chip_mate 12/5/2012 | 3:48:57 AM
    re: Quigley Steps Down as Lucatel COO "Alcatel is famous for buying companies and eventually liquidating the managment of the bought out companies. That's what they did with ITT in late 80's"

    MORON: sorry you got fired after Alcatel bought ITT.
    Take a look at EVERY OTHER Alcatel acquistion.

    How about DSC? DSC basically took over most positions at Alcatel. The acquistion was bumpy but most made out fantasically, especially the customers once they got everything settled.

    The only people I've ever met that didn't like the DSC purchase were the ones who were booted 30 days after the merger. They seem to still hold a grudge. Guess there's nothing else to chat about in the soup line at the homeless shelter in downtown Dallas.
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