Alcatel – Lucent

Rocky month for both companies as analysts are split on the value for Alcatel of the deal. Reactions are contrasted on both Atlantic sides. In the US: Dresdner Kleinwort wrote negatively on the deal, but Institutional Shareholder Services spoke favorably on the merger; in France: Proxinvest asked Alcatel shareholders to vote against. What is mainly challenged is the favorable 1-5 ratio between an Alcatel share and 5 Lucent shares. In final, shareholders will decide (more than 50% for Lucent and more than 70% for Alcatel have to support the deal) on Sept 7.