Sunday, July 9, 2006

Alcatel and Lucent on Track to Complete Merger by Year's End

Alcatel and Lucent Technologies confirmed that they are on track to complete their merger transaction by the end of calendar year 2006, which is within the 6 to 12 month timeframe originally announced. In recent weeks, the two companies have achieved a number of significant milestones, including satisfying some regulatory conditions to the proposed merger.

The business model and the associated organization of the combined company are now defined and will be implemented immediately upon closing. The overall business will be segmented in Business Groups structured along the global requirements of those three markets, while a decentralized regional organization will provide local support to customers.

The Carrier Business Groups, headed by Etienne Fouques will consist of:

  • Wireless, headed by Mary Chan,

  • Wireline, headed by Michel Rahier,

  • Convergence, headed by Marc Rouanne

The Enterprise Business Group will be headed by Hubert de Pesquidoux.

The Service Business Group. will be headed by John Meyer.

The Company will have four geographic regions:

  • Europe and North, headed by Vince Molinaro,

  • Europe and South, headed by Olivier Picard,

  • North America, headed by Cindy Christy,

  • Asia-Pacific, headed by Frederic Rose.

The company will have a management committee which will be headed by Pat Russo, Chief Executive Officer. The members of this committee will include Etienne Fouques, Senior Executive Vice President of the Carrier Group; Frank D'Amelio, Senior Executive Vice President Integration and Chief Administrative Officer; Jean-Pascal Beaufret, Chief Financial Officer; Claire Pedini, Senior Vice President, Human Resources and Communication and Mike Quigley. 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.

Alcatel and Lucent also confirmed that detailed evaluations of cost synergies confirm that previously announced targets should be fully met.

Also, on June 7, 2006, the two companies were notified that they had received early termination under the Hart-Scott-Rodino US Antitrust Improvements Act of 1976 (HSR) as it pertains to the merger.

On June 16, 2006, the companies filed for European antitrust approval.


See also