Alcatel and Lucent made their merger plans official yesterday, forming a mega-vendor company valued at about $25 billion in revenue. The new company, which doesn't have a name yet, is expected to eliminate 10 percent of its combined work force of 88,000 and save $1.7 billion a year within three years. While Lucent CEO Pat Russo will be the combined company's CEO, the shares of the new company will be listed in Paris. To ease national security concerns, which were said to be holding the deal up, the combined company says it plans to form an independent U.S. subsidiary to handle certain American government contracts.
To read more about the Alcatel and Lucent merger deal:
- check out this article from The Wall Street Journal (sub. req.)
- take a look at this report from Red Herring