The French government is thinking of taking a minority stake in Alcatel-Lucent (ALU -5.6%),...


The French government is thinking of taking a minority stake in Alcatel-Lucent (ALU -5.6%), Bloomberg reports, while adding other options are on the table. The government, which has already taken an active interest in the struggling telecom equipment maker, has also reportedly considered encouraging a merger with Nokia Siemens NOK, SI), and is said to be interested in safeguarding ALU's patents (which the company has been trying to monetize). (previous)

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Comments (8)
  • MEKhoury
    , contributor
    Comments (403) | Send Message
     
    Sacre bleu! Stop the bleeding
    21 Feb 2013, 02:33 PM Reply Like
  • JayXu
    , contributor
    Comments (266) | Send Message
     
    NOOOOOOOO! Nokia, dont merge with this shittty company!
    21 Feb 2013, 02:53 PM Reply Like
  • ted lujan
    , contributor
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    Wow! this ought to make the shorts happy.
    21 Feb 2013, 03:23 PM Reply Like
  • WhatdoIknow1
    , contributor
    Comments (652) | Send Message
     
    If any of this ends up being true. Most deals that involve governments have strong elements of corruption. Prices can reach astronomical levels as clueless administrators are forced to get the deal done at any cost and then bear all the blame.

     

    Alcatel might actually benefit with a cost chopping outsider like Elop at the helm. Someone with no old boy ties might be able to save something that was almost beyond dead. If the merger does happen it would eliminate one of the weaker competitors to NSN.

     

    At this point who really knows?

     

    Long Nokia
    21 Feb 2013, 04:33 PM Reply Like
  • dhdhoora
    , contributor
    Comments (763) | Send Message
     
    Uh, whatdoIknow, but one must guess that any socialist dabbling in NSN would be undertaken only through a spin-off of NSN out of NOK. Siemens would be out of NSN (Germans will not play with the French - the EU simply is not the friendly...) ALU would take seat at the table -- but my guess is that this a non-starter for Nokia unless there is a tremendous amount of francs laid at their doorstep...

     

    But, what do I know!
    All the very best,
    Don
    21 Feb 2013, 08:17 PM Reply Like
  • serge9
    , contributor
    Comments (497) | Send Message
     
    some good news for Alcatel, this will help the stockget to its true value +++
    Alcatel-Lucent appoints Michel Combes as CEO
    Michel Combes, 51 has more than 20 years of experience in the telecommunications industry on a worldwide basis. He was Chief Executive Officer of Vodafone Europe and a Board member of Vodafone PLC. During his career, he has held the positions of Chairman and CEO of TDF as well as Chief Financial Officer and Senior Executive Vice President of France Telecom.

     

    Alcatel-Lucent: Jean C. Monty to be appointed as Vice-Chairman of the Board
    Jean C. Monty, 64 is a Canadian national. He began his career at Bell Canada in 1974 and held numerous positions in the BCE (Bell Canada Enterprises) group. He joined Nortel Networks Corporation in October 1992 as President and Chief Operating Officer before being nominated President and Chief Executive Officer in March 1993. On April 24, 2002, Mr. Monty, then Chairman of the Board and Chief Executive Officer of Bell Canada Enterprises, retired after a 28-year career.
    22 Feb 2013, 01:30 AM Reply Like
  • STDvooh
    , contributor
    Comments (641) | Send Message
     
    Today it was a sell on news moment. If France does take a minority position it will take a chunk of shares off the market. That would be positive for the share price.

     

    Would France being a minority shareholder be good for ALU business wise? It could be a good thing financially. France's influence in the Euro zone could easily keep Asian companies out of Europe. Financing may become easier, with perhaps government loan guarantees and/or outright grants. Even tax relief/tax forgiveness is possible, as socialists don't tend to tax what they own an interest in. Some of ALU pension burden might get transferred to the French government. Perhaps the government will transfer the pension fund into a separate entity, backed by their ALU shares?

     

    Will France being a minority owner get ALU to be more cutting edge, on the level of their lightRadio and their super core router? Probably not. But in the interim, ALU shares may rise, especially if the NSN merger appears to be a go.
    22 Feb 2013, 02:50 AM Reply Like
  • lemoni
    , contributor
    Comments (2) | Send Message
     
    ALU will come back
    22 Feb 2013, 06:47 AM Reply Like
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