Vendor consolidation: Alcatel- Lucent

No news from the proposed merger of equals between Alcatel and Lucent, except the deal was examined on both side of the Atlantic Ocean in both company' s Board meetings. Some topics, however, emerge on sensible domains: defense, R&D, satellite, ..

Both companies have enough assets in R&D, state-backed projects, that touched sensible domains for trying to preserve interests of both sides.

In R&D, Lucent' s Bell Labs are at the heart of many US strategic researches and are not expected to be directed by a foreign company. The solution could be a separate company with an all-American management.

In satellite, Europe searches restructuring its spatial industry. EADS, with already a satellite unit Astrium, is a candidate to buy both Alcatel Space and Thales. But the situation is a little more complex. Alcatel Space is already married with Finmeccanica (Italy). All parties will have to clear the deal. Currently, the solution could be the sale of Alcatel Space to Thales (backed by the French government) and Alcatel would receive about a 25% stake in Thales.

To be continued.................