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Technology Stocks : Alcatel (ALA) and France -- Ignore unavailable to you. Want to Upgrade?

To: zbyslaw owczarczyk who wrote (3292)	5/21/2001 8:16:16 AM
From: elmatador	Respond to of 3891

"Should they merge, it would be to hide something," one analyst said. READ ON: ERICSSON: NOT AFFECTED SHLD ALCATEL BUY LUCENT - ANALYSTS (News agency Direkt) -- A merger of French company Alcatel and U.S. Lucent Technologies would not affect Ericsson to any greater extent, according to industry analysts speaking to Direkt News Friday. The news of such a scenario came from The New York Times Friday as the paper reported that Alcatel is in advanced talks to buy Lucent for over 40 billion dollars. "Their operations within optical fiber, both under water and cable, would motivate such a deal, not their mobile systems," one analyst said as an explanation to the limited impact on Ericsson. Another analyst said that while a deal between Alcatel and Lucent could affect Ericsson`s fixed network operation, the impact wouldn`t be of an alarming nature. Nor would a merger between Alcatel and Lucent pose a threat to Ericsson`s or Nokia`s handset units. "They [Alcatel and Lucent] are two weak players that would just become a somewhat larger player," one analyst said. Instead, industry observers said that the rumors of a merger indicate a consolidation trend within the telecom sector and they predict a lot to happen within this area, involving not only handset operations but entire companies. "Consolidation is very much of an issue even for suppliers of telecom hardware, not only for operators," one analyst said. All analysts speaking to Direkt expressed doubt in the success of an Alcatel bid for Lucent. Cultural differences, payment in shares, and company operations are factors speaking against a merger. "I don`t believe in such a merger for a second. That company would have the craziest overlapping operations and a combined 250,000 employees. Should they merge, it would be to hide something," one analyst said.