(Associated Press via NewsEdge) President Bush has approved the proposed $11.8 billion takeover of Lucent Technologies by French-owned Alcatel, saying the merger of the two telecommunications equipment companies does not present any major national security concerns.
White House press secretary Tony Snow, traveling with Bush in Hanoi, Vietnam, said the president agreed with the recommendation of the Committee on Foreign Investment in the US, or CFIUS, to allow the deal to go through, removing the last major regulatory hurdle to the combination of the two companies.
The merged company will become one of the world's largest telecommunications equipment suppliers, generating about $25 billion in sales and accounting for about an 18% share of the market.
The combined company will trim about 9,000 jobs, saving $1.8 billion over three years.
Snow said Alcatel and Lucent agreed with US government agencies to enter into 'robust and far-reaching agreements designed to ensure the protection of our national security.'
The merger required the approval of the foreign investment council due to Lucent's work on sensitive government contracts.
Lucent is the parent of Bell Labs, the legendary research organization that has generated more than 31,000 patents since 1925 and is credited with inventing the transistor. Lucent is headquartered in Murray Hill, N.J., and employs about 29,800 people worldwide.
Lucent CEO Officer Patricia Russo will run the new company from Paris, where Alcatel is based.
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