Alcatel, Lucent Close Deal

The new Alcatel-Lucent will begin trading under ALU Friday.
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Lucent (LU) and Alcatel (ALA) say their merger is a done deal.

The new

Alcatel-Lucent

will start trading Friday under ticker ALU.

Final terms of the deal call for each Lucent share to be converted to 0.1952 Alcatel American depositary share. Alcatel will issue those ADS holders 878 million shares, or the equivalent of the ADS shares held by Lucent investors. In total, the new company will have 2.31 billion shares outstanding.

"Through this merger, we are bringing together two top-ranking companies to form an undisputed leader in the industry, a company poised to enrich people's lives by transforming the way the world communicates," Alcatel-Lucent chairman Serge Tchuruk said.

The company will be based in Paris and employ about 79,000 people worldwide. Of that number, about 23,000 employees will be in research and development, a business unit that will remain headquartered in New Jersey.

Some 9,000 employees are expected to be cut from the company within the next three years.

Lucent CEO Pat Russo will take the chief executive job and work in Paris.

Lucent was down a penny at $2.56 and Alcatel was down 9 cents at $13.16 in midafternoon trading.