Merger talks called off

Wednesday, May 30, 2001 | 10:58 a.m.

NEW YORK -- Merger talks between French telecommunications giant Alcatel SA and Lucent Technologies Inc. were called off Tuesday after intense negotiations over the long holiday weekend failed to yield an agreement.

In a statement, both companies said that the negotiations in Paris had failed, but didn't disclose why they ended the talks.

Sources said disagreements over how to share control of the combined company were the main roadblocks preventing what would have been one of the largest takeovers of a U.S. company by a foreign concern.

Lucent officials apparently balked because Alcatel refused to treat the deal as a merger of equals.

archive