Mergers, Acquisitions and Takeovers Case Study

Alcatel And Lucent Merger : Creating A Telecom Titan

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Abstract:

In the first half of 2006, Alcatel decided to merge with Lucent and create the largest and most experienced global services and support organisation in the industry. The merger was set to generate combined revenues of about Euro 21 billion ($25 billion) based on 2005 calendar results and create a global leader in converged network and services. The merger further aimed to capitalise on the emerging market demands for high-end technologies, including critical safety and security applications.

The case, while providing a broad overview of the two telecom companies, offers scope to discuss the synergies of the merger and the probable payoffs.

Pedagogical Objectives:

• To understand the dynamics of a cross-border merger
• To critically analyse the impact of global consolidation of the telecommunications industry
• To understand the synergies associated with a merger
• To discuss the viability of Alcatel-Lucent merger and its impact on the business portfolio in the long-run.

Keywords : Mergers,Acquisitions,Alliances Case Study;Alcatel; Lucent; Patricia Russo; Converged services; Triple play functionality; DSL (digital subscriber line); VOIP (voice over Internet protocol); Network Solutions Group; Lucent Worldwide Services; Bell Labs; Serge Tchuruk; Cost synergies; Cross-border merger; End-to-end solutions provider

Contents : 
Expected Synergies From The Merger
The Flip Side
Alcatel: The End-To-End Solutions Provider
Alcatel’s Revenue By Region
Alcatel’s Product Portfolio
Alcatel’s Revenue By Segment
Consolidated Financial Statements Of Lucent
Creation Of Global Leader In Convergence