Nortel/Alcatel-Lucent asset swap?

Publié le par Jean Arnal


The latest rumor that circulates suggests an asset swap between GSM infra business from Nortel vs enterprise PBX business from Alcatel-Lucent. The deal would make sense, based on the following rationale: Nortel said it will exit markets where it cannot be a leader with at least 20% market share (it has about 7% in GSM infra market and $2bn in sales); it already has sold its UMTS business to Alcatel-Lucent in Dec. 06; but remains a solid player in the enterprise market. Alcatel-Lucent is weak in the enterprise market, except in Europe with a leading position in IP-PBX and about $1.2bn in revenues, and profitability is low; it wants to grow in the mobile infra market and combining Nortel GSM business with its own business would create a $5-$6bn business with a 18% market share. With this deal, both companies would enter in a win-win strategy; but talks would continue for a while before reaching a more balanced proposal.

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