Alcatel, Lucent close to merging?

Paper reports the telecom equipment makers have removed most obstacles to a deal; may happen soon.

March 30, 2006: 7:11 AM EST


NEW YORK (CNNMoney.com) - Alcatel and Lucent Technologies may strike a merger agreement within days, according to a published report.

The Financial Times reported that negotiators with the French and American telecom equipment makers had resolved most of their differences in recent talks and that directors of Paris-based Alcatel (Research) are set to meet Thursday to discuss terms of the potential deal.

The paper reports that the Alcatel board is not likely to make a final decision Thursday, though, and that the Lucent (Research) board still needs to meet to approve the proposed deal.

The paper also reports that Lucent CEO Patricia Russo and Alcatel CEO Serge Tchuruk have agreed to the broad outlines of the deal. Russo would be CEO of the combined company, which would be based in Paris, and the board would have an equal number of members from the two companies.

Shares of Alcatel were off 0.5 percent in heavy Paris trading early Thursday.