Lucent, Alcatel terminate merger talks

Article Abstract:

Lucent Technologies apparently felt it would not enjoy equality with Alcatel S.A. within the French company's $22.8 billion acquisition. Lucent chief Henry Schacht had hoped to be more than Alcatel's unit; though Alcatel would own 58% of Lucent and have more board members. Alcatel's chief Serge Tchuruk, along with Schacht think a deal could still be made in the future, but lower executives see things differently. Meanwhile, Lucent is back to dealing with a weak market and a $5 billion net loss for the fiscal year-half. Alcatel reports a $2.58 billion second quarter loss.

France, Telecommunications Equipment, Telecommunications systems, Negotiation, mediation and arbitration, Lucent Technologies Inc., LU, Compagnie Financiere Alcatel, Tchuruk, Serge, Schacht, Henry

---

Sanmina to buy rival SCI for $4.5 billion; stock deal would unite contract manufacturers for electronics industry

Article Abstract:

Contract electronics manufacturer Sanmina Corp. is poised to acquire rival SCI Systems Inc. for $4.5 billion in stock. Due to the current slump in technology product sales, experts have been anticipating such mergers of contract manufacturers as a way to cut costs and reduce capacity. The two firms hope to see $100 to$150 milion in cost savings from the deal, as well as immediate addition to earnings.

Printed Circuit Assembly (Electronic Assembly) Manufacturing, Communications Eqp ex Tel, Electronic components, not elsewhere classified, Printed Circuit Boards, Statistical Data Included, Economic aspects, Telecommunications equipment, Manufacturing, SCI Systems Inc., Sanmina Corp., SCIS, SANM, Contract manufacturing

---

Avnet to acquire Marshall for a total of $650 million

Article Abstract:

Avnet Inc. has agreed to acquire Marshall Industries for around $650 million in cash and stock, as the consolidation among electronics parts distributors continues. The acquisition will allow No. 2 Avnet to keep up with the market leader Arrow Electronics Inc. The deal should also allow Avnet to broaden its product line, especially by gaining Marshall's Japanese suppliers, and increase profit margins by eliminating around $40 million in annual administrative costs. Avnet will pay $39 a share in cash, or 0.81569 share of Avnet stock, for each share of Marshall. Roy Vallee, chief executive officer of Avnet, defended the purchase price, claiming that Marshall's stock had been depressed by a long slump in the semiconductor industry. The deal is expected to dilute Avnet's earnings by just a few cents a share in the December quarter, but should not affect earnings in the next quarter, and should increase earnings in the quarter ending in June 2000.

Asset sales & divestitures, Electronic parts and equipment, Electronic Parts Wholesale, Other Electronic Parts and Equipment Wholesalers, Wholesale industry, Wholesale trade, Electronics industry, Electronics wholesalers, Avnet Inc., AVT, Marshall Industries, MI

Similar abstracts:

• Abstracts: Liberty to buy Associated for $2.8 billion; stock deal gives firm 41% of Teligent and entree to fixed-wireless area
• Abstracts: Cisco posts loss of $2.69 billion; investors get limited hope in results for rebound to come in near term. JDS Uniphase plans more layoffs, trims results targets for quarter
• Abstracts: Texas Instruments to acquire Unitrode, a chip maker, for $1.2 billion in stock. Broadcom will buy SiByte for about $2 billion
• Abstracts: Lucent readies a new round of staff cuts; layoffs could top 10,000 as part of restructuring at telecom-gear maker
• Abstracts: EchoStar's Ergen starts campaign to get approval for Hughes deal. NextWave deal with government looks remote

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.