Advertisement
News
Advertisement

Lucent/Alcatel deal dead for now

Tue, 05/29/2001 - 8:00pm
Anne Kerven

In a sharp about-face from all previous comments, Lucent Technologies and Alcatel acknowledged they'd been in merger talks and then just as quickly confirmed they've been called off.

Observers say the two could not agree on how many board seats each would get. Lucent and Alcatel aren't talking and have refused to comment on the issue for nearly two weeks.

Executives from the two companies met over the weekend at a conference resort outside Paris to hammer out the last details, The New York Times reports. Boards for both companies had approved moving ahead with the talks last week.

Alcatel was to have eight members on the new board and Lucent was given six, but wanted to add two more. Alcatel wanted some input on at least one of those, NYT reports.

Alcatel hasn't made any secret of wanting to move in to the American market, while Lucent has shopped itself to at least two other firms.

Regardless, the "discussions have not resulted in any agreements and have been terminated," the two report. Neither had further comment.

On the heels of the collapsed talks, however, Alcatel warned it would have a second quarter net loss of about $2.56 billion, excluding capital gains from disposing of assets by the end of the year. The company cited market conditions and restructuring consequences of closing its cellular handset manufacturing business for the losses.

Core Networks lands more funds for growth plans

Core Networks has picked up financing in addition to a $10.5 million shot in the arm it received March. The amount of new funding was undisclosed.

The most recent funding will go to pay for business development, marketing and a new office in Europe, spokeswoman Andrea Young tells CEDaily. The previous funding went to "the same sorts of things," she says. "We're ramping up our international sales," among other objectives.

The recent funds were invested by Royal Bank Capital Partners and Intel Capital Investment. The previous round was led by Royal Bank Capital Partners Telecommunications Fund.

Core develops activation and network management software for high-speed Internet over cable.

Advertisement

Share This Story

X
You may login with either your assigned username or your e-mail address.
The password field is case sensitive.
Loading