Iria

Telecoms equipment companies Alcatel and Lucent Technologies said Sunday they had entered a definitive agreement to merge and form a new group with revenues of around $25.4 billion.

The transaction, which will see Alcatel shareholders have the lion's share of the new company, stands to create a world leader in its sector and comes amid a wave of consolidation in the telecoms industry.

The transatlantic deal had been partly complicated by Alcatel's plans to increase its stake in French defense electronics group Thales--a politically sensitive issue that has involved the German and French governments.

Alcatel said it would continue talks with Thales over possibly increasing its shareholding in the group. Alcatel now has a stake of around 9.5 percent in Thales, while the French government holds around 30 percent of Thales.

Alcatel and Lucent said the deal was a "merger of equals."
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Read More / Source: ZDNet