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Started out as Collins Radio. Art Collins started in his garage.
Collins became Rockwell International. In approximately 1980, Rockwell split into 2 divisions, commercial and defense.
Alcatel bought the commercial endeavor.
I know this, and felt compelled to pass it on, because I worked 12 years at Rockwell, most of it with defense.
Art's baby has come a long way.
Collins became Rockwell International. In approximately 1980, Rockwell split into 2 divisions, commercial and defense.
Alcatel bought the commercial endeavor.
I know this, and felt compelled to pass it on, because I worked 12 years at Rockwell, most of it with defense.
Art's baby has come a long way.
$13.4 billion stock swap should create a stronger telecom-gear player
09:34 AM CDT on Monday, April 3, 2006
Associated Press
PARIS – Alcatel SA will acquire U.S.-based Lucent Technologies Inc. in a $13.4 billion stock swap to form a stronger player in the fiercely competitive telecom-equipment market, the companies announced Sunday. About 8,800 jobs will be cut.
The combined business, to be based in Paris, will make the most of fast-growing converged offerings such as "triple-play" Internet, phone and TV packages, the companies said. It will have annual sales of $25 billion – ahead of LM Ericsson's $19.9 billion.
The tie-up will generate $1.7 billion in savings within three years, the companies said.
The savings will come from a 10 percent cut to the 88,000 combined global workforce as well as from consolidated purchasing, support services and research and development.
Alcatel, which has its North American headquarters in Richardson, employs about 2,350 people in the Dallas-Fort Worth area.
Like other area telecom companies, it's only a fraction of its former size, shrinking from 7,000 at the start of 2001 to 5,000 in 2002 and as low as 2,239 last year.
It has its lab and testing facility for Internet protocol television in Richardson. It is a major partner of AT&T Inc., which is investing $4 billion in a fiber-optic network that can deliver television to homes.
Alcatel also has optical, access products, voice and wireless products here, as well as sales and marketing, customer support, human resources and other headquarters functions.
Lucent has a small presence in the state, with 390 employees, including just over 60 in the D-FW area.
The new Alcatel-Lucent – whose new name is to be announced later – should be better equipped to weather intense competition in the telecom-equipment market.
"The primary driver of the combination is to generate significant growth in revenues and earnings based on the market opportunities for next-generation networks, services and applications," the companies said.
Analysts have said the tie-up is a good fit, as well as helping the combined company stand up to pricing pressures from larger telecom service providers emerging from a new wave of consolidation.
Previous talks
Alcatel and Lucent tried to merge before, but talks ended without a deal in 2001.
The combined business will be led by Lucent CEO Patricia Russo, the companies said. Alcatel chairman and CEO Serge Tchuruk will become nonexecutive chairman.
The 14-member board of directors will include Ms. Russo, Mr. Tchuruk, five of the current directors from each company and two new independent European directors to be mutually agreed upon.
Though Lucent and Alcatel described the deal a "merger of equals," Alcatel shareholders will hold about 60 percent of the new company.
Lucent shareholders will receive 0.1952 of an Alcatel American Depositary share for each common share they own – worth $3.01 at Alcatel's Friday closing price of $15.40.
Lucent closed at $3.05 Friday, slightly above the offer value, but chief financial officer John Kritzmacher said Lucent shares had risen on expectations of a deal.
"This is a very fair and equitable deal for Lucent shareholders and Alcatel shareholders," he said during a conference call.
Paris-based Alcatel has more revenue and employees, but Lucent, based in Murray Hill, N.J., is slightly more profitable.
There were no details about the job cuts, but Ms. Russo pledged to "take a fair and balanced approach."
The companies appeared to have resolved a standoff over Alcatel's satellite activities, which Alcatel had planned to transfer to Thales SA, in return for increasing its stake in the French defense electronics company to about 25 percent from the current 10 percent.
European Aeronautic Defence and Space Co. intervened to demand that its own Astrium satellite unit be included in the operation – with the reported backing of French President Jacques Chirac.
Satellite deal
But the satellite deal between Alcatel and Thales is now poised to go ahead without EADS, a person familiar with the talks said.
The person asked not be identified because the negotiations are confidential, and a government spokesman declined to comment.
In a move to address U.S. security concerns about Bell Labs, the Lucent research arm that does sensitive work for the Pentagon, Alcatel and Lucent announced plans to form a separate, independent American subsidiary.
Alcatel and Lucent had said March 23 that they were negotiating a merger.
The deal has been approved by the boards of each company and requires regulatory and governmental reviews in the United States, Europe and elsewhere.
The deal is set to be completed in six to 12 months, the companies said.
09:34 AM CDT on Monday, April 3, 2006
Associated Press
PARIS – Alcatel SA will acquire U.S.-based Lucent Technologies Inc. in a $13.4 billion stock swap to form a stronger player in the fiercely competitive telecom-equipment market, the companies announced Sunday. About 8,800 jobs will be cut.
The combined business, to be based in Paris, will make the most of fast-growing converged offerings such as "triple-play" Internet, phone and TV packages, the companies said. It will have annual sales of $25 billion – ahead of LM Ericsson's $19.9 billion.
The tie-up will generate $1.7 billion in savings within three years, the companies said.
The savings will come from a 10 percent cut to the 88,000 combined global workforce as well as from consolidated purchasing, support services and research and development.
Alcatel, which has its North American headquarters in Richardson, employs about 2,350 people in the Dallas-Fort Worth area.
Like other area telecom companies, it's only a fraction of its former size, shrinking from 7,000 at the start of 2001 to 5,000 in 2002 and as low as 2,239 last year.
It has its lab and testing facility for Internet protocol television in Richardson. It is a major partner of AT&T Inc., which is investing $4 billion in a fiber-optic network that can deliver television to homes.
Alcatel also has optical, access products, voice and wireless products here, as well as sales and marketing, customer support, human resources and other headquarters functions.
Lucent has a small presence in the state, with 390 employees, including just over 60 in the D-FW area.
The new Alcatel-Lucent – whose new name is to be announced later – should be better equipped to weather intense competition in the telecom-equipment market.
"The primary driver of the combination is to generate significant growth in revenues and earnings based on the market opportunities for next-generation networks, services and applications," the companies said.
Analysts have said the tie-up is a good fit, as well as helping the combined company stand up to pricing pressures from larger telecom service providers emerging from a new wave of consolidation.
Previous talks
Alcatel and Lucent tried to merge before, but talks ended without a deal in 2001.
The combined business will be led by Lucent CEO Patricia Russo, the companies said. Alcatel chairman and CEO Serge Tchuruk will become nonexecutive chairman.
The 14-member board of directors will include Ms. Russo, Mr. Tchuruk, five of the current directors from each company and two new independent European directors to be mutually agreed upon.
Though Lucent and Alcatel described the deal a "merger of equals," Alcatel shareholders will hold about 60 percent of the new company.
Lucent shareholders will receive 0.1952 of an Alcatel American Depositary share for each common share they own – worth $3.01 at Alcatel's Friday closing price of $15.40.
Lucent closed at $3.05 Friday, slightly above the offer value, but chief financial officer John Kritzmacher said Lucent shares had risen on expectations of a deal.
"This is a very fair and equitable deal for Lucent shareholders and Alcatel shareholders," he said during a conference call.
Paris-based Alcatel has more revenue and employees, but Lucent, based in Murray Hill, N.J., is slightly more profitable.
There were no details about the job cuts, but Ms. Russo pledged to "take a fair and balanced approach."
The companies appeared to have resolved a standoff over Alcatel's satellite activities, which Alcatel had planned to transfer to Thales SA, in return for increasing its stake in the French defense electronics company to about 25 percent from the current 10 percent.
European Aeronautic Defence and Space Co. intervened to demand that its own Astrium satellite unit be included in the operation – with the reported backing of French President Jacques Chirac.
Satellite deal
But the satellite deal between Alcatel and Thales is now poised to go ahead without EADS, a person familiar with the talks said.
The person asked not be identified because the negotiations are confidential, and a government spokesman declined to comment.
In a move to address U.S. security concerns about Bell Labs, the Lucent research arm that does sensitive work for the Pentagon, Alcatel and Lucent announced plans to form a separate, independent American subsidiary.
Alcatel and Lucent had said March 23 that they were negotiating a merger.
The deal has been approved by the boards of each company and requires regulatory and governmental reviews in the United States, Europe and elsewhere.
The deal is set to be completed in six to 12 months, the companies said.
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