Alcatel Lucent

Alcatel and Lucent have chosen their conjugal name: Alcatel Lucent. It is at no surprise but also at no innovation. We should have expected a more appealing brand.

The wedding preparation is going on, but grey clouds gathered last week on the proposed merger. Several analysts and investors questioned the logic of the merger, the weight of Lucent's pension exposure, the Lucent's recurrent weakness acting as a drag on Alcatel's share price, and the credibility of ROI expectation. Several hedge funds could lead a charge to vote against the deal, at Lucent and Alcatel's annual general shareholders meetings, both set for Sept. 7, . Can hedge funds get 50% of the outstanding shares in order to vote down the merger? The main issue behind the picture is the opposition between a long-term strategy (make the merger) versus a short-term strategy (hope Alcatel shares will jump to make immediate profit). A new version of the everlasting debate: shark against lamb. Answer on Sept. 7.