Updated from 8:05 a.m. EST
Wall Street awoke Friday to news of merger talks between Lucent(LU Quote) and Alcatel(ALA Quote), a deal that would unite two fierce competitors in the shifting market for telecom equipment.
Lucent, whose dramatic rise and fall during the Internet boom made it a poster child for the era's excesses, confirmed that it is holding talks to merge with its French rival. The transaction is being billed as a merger of equals even though Alcatel's $20 billion market cap is about 40% greater than Lucent's.
The statement said the companies are aiming to price the deal "at market." Shares of Lucent, whose stock market value is about $12 billion, closed at $2.82 Thursday and were up 29 cents, or 10%, to $3.11 in early Instinet trading. Alcatel added 54 cents, or 3.5%, to $15.99 Friday. ...
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