Al Carter will be merged with lucent analysis that does not impact HUAWEI ZTE

Yesterday was a Global Telecommunications News surging -- the two international telecommunications giant Al Carter and Lucent jointly announced that the two sides will merge in the global scope. An annual revenue of up to $25 billion of super telecom giant was born, approaching the world's largest network equipment provider CISCO.

Last month, the global communications industry has gone through a big merger - the United States AT&T to $67 billion acquisition of Bell South Corporation. This "Aaron merger" set off a new round of mergers and acquisitions.

Global layoffs 8800 Lucent China can not escape

It is reported that the new company is headquartered in Paris, france. Lucent incumbent CEO Lu Sibo will serve as the new company Alcatel CEO, chairman of the board and CEO Chu because the new company will serve as non-executive chairman of the board of directors. Although the two sides called it a "merger", but Al Carter is undoubtedly the active side.

Lucent from AT&T company in 1996 out of the current performance is not ideal. Al Carter is better.

According to the agreement, the two companies plan to lay off on a global scale of 10%. As of December 31, 2005, a total of 88 thousand employees. This means that about 8800 employees will be forced to leave.

It is understood that the two companies in the field of wireless communications, including the existence of a large overlap 3G, the industry has concluded that the field is certainly the hardest hit".

Al Carter, China, the relevant responsible person said, two companies in China business merger program has not yet been introduced, including the field of layoffs, the company will be disclosed at the appropriate time.

Some analysts believe that lucent, including Chinese companies, including a considerable number of people are facing the risk of layoffs. The company since 2001, several layoffs, the global reduction of the company's total number of employees nearly 2/3. In this regard, Lucent China declined to comment yesterday.

Second global telecom reorganization

The capital market for "Aaron with" warm response. Lucent's share price topped $3, and Al Carter's share price was close to $16.

Chief analyst at Hongkong global economic dispatch agency believes that the "Aaron marriage" is the inevitable result of global telecom reform, will affect the global telecommunications industry pattern. And predict the next few years, the world's hundreds of telecom equipment manufacturers are facing a new round of restructuring, the final merger of dozens of enterprises.

In a public statement, both sides said the primary motivation of the merger is in order to better cope with the increasingly fierce competition in the telecom equipment Market: "the merger will enable the company to fully seize the next generation telecommunication network, service and application of market opportunities, significant growth in revenue and profit, and form a strong synergistic effect".

The analysis thinks, "one of the important reasons for this merger" is HUAWEI, ZTE and other Chinese resistance from local manufacturers threatened by low price products, which originally belonged to the "Aaron" leveraging the market. In the Chinese market, telecommunications expert Wang Yuquan said, after Al Carter and Lucent their voice is not large, with their army against HUAWEI outlook is not optimistic, in the short term is difficult to shake the China Telecom equipment market competition pattern.

Where does Baer lab go?

An important aspect of the merger is that Lucent's Baer lab will go. Baer laboratory is the cradle of modern science and technology is one of the most eye-catching laboratory.

However, Baer laboratory with the U.S. military has inextricably linked, is considered to be one of the signs of the United states. This is one of the big deals that must be overcome.

Two the company gives a solution: the merger of the company plans to set up a separate U.S. Affiliated Companies to come forward with the U.S. government and agency contracts. The Affiliated Companies will set up the board of directors, management separately, three American citizens board accepted by the American government ".

The story tells of the fate of the Baer lab: the merger of the new company, but its commitment to the United States government related projects will be independent.

This does not mean that the Baer lab will be 'spin off', but the relevant sensitive projects independently." Al Carter relevant person in charge explained.

"Aaron marriage" has received the approval of the board of directors, also needs the United States, Europe and other national regulatory agencies to review and approval by shareholders. Both sides expect the transaction to be completed in the next 6 to 12 months.