Alcatel-Lucent fusion: the birth of a giant on the market of telecommunications

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Alcatel-Lucent fusion: the birth of a giant on the market of telecommunications

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Abstract

The merger of Alcatel, a French group of telephony (mainly fixed), and Lucent, an American mobile phone group, happened in 2006.

After the first abortive attempt to merge in 2001, the merger was actually be accomplished 5 years later.
-2001: First attempt at forming a merger failed
-April 2, 2006: Decision in favor of the merger was taken by the boards of the companies
-September 7, 2006: Adoption of the merger by the shareholders of Alcatel
-March 25, 2008: Confirmation of the management team to lead the group responsible for the merger

The merger of these two telecom giants formed the world's largest group in fixed telephony, and was ranked number three in the sector of mobile telephony, with 88,000 employees, 21 billion Euros in sales and 30 billion market capitalizations.

Tags:Alcatel-Lucent merger,Srge Tchuruk,CDMA license

Presentation of the merger
Merger Results
Current Situation

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[...] Its results are very bad, with heavy losses in the year 2007, undervalued assets (including the license CDMA) and restructuring that has undermined the morale of employees.The group is now led by Ben Verwaayen and Philippe Camus, who have prepared a recovery plan: - Motivate employees: tired social plans, restructuring and bad results. - Reviving the mobile business, whose main assets were the CDMA license and Lucent's strong position in the U.S., which have been largely depreciated. The future in mobile operations is also compromised because the group is facing stiff competition and is a little late in the area of licensing and partnering for UMTS and 4G. [...]

[...] - 2001: First attempt at forming a merger failed - April 2006: Decision in favor of the merger was taken by the boards of the companies - September 2006: Adoption of the merger by the shareholders of Alcatel - March 25, 2008: Confirmation of the management team to lead the group responsible for the merger The merger of these two telecom giants formed the world's largest group in fixed telephony, and was ranked number three in the sector of mobile telephony, with 88,000 employees billion Euros in sales and 30 billion market capitalizations. [...]

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