Lucent Technologies, Inc. update

Posted on March 24, 2006 , filed under Stocks | Print This Post

LU, Lucent Technologies, Inc. is jumping up today on talks that the company might merge with French telecom equipment maker ALA, Alcatel. A merger would throw a wrench into my long term price targets for LU, depending on which company retained majority control and the financial terms of the deal. Early indications have Alcatel acquiring Lucent for less than Lucent’s current market cap.

Here is a quote from today’s press release about the merger.

The Times, citing people close to the talks, reported that Alcatel was negotiating to acquire Lucent for about $12.6 billion. The Journal valued the “merger of equals” at $33 billion, quoting unnamed people familiar with the matter.

I will likely sell LU if the stock breaks $3.20 today.

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