ITT accepts $3.6 billion Alcatel sale

Article Abstract:

ITT Corp is selling its 30 percent holdings in Alcatel NV, the world's largest manufacturer of telephone equipment, to Alcatel Alsthom SA, the French conglomerate that already owns the other 70 percent, for $3.6 billion. Alcatel Alsthom will pay three installments through mid-1994 to ITT, with the balance of the payments being taken by ITT in the form of 9.1 million shares of stock, which it has agreed to hold at least until 1997. ITT, which started in the telephone business, has now divested itself of all telecommunications holdings, leaving it with automotive and electronic components, forestry, hotel and financial service interests. Alcatel NV had 1990 telephone equipment sales of $17.9 billion, making it larger than AT and T. Alcatel Alsthom, formerly Compagnie Generale d'Electricite, has increased its telecommunications interest steadily over the past five years. The news increased Alcatel Alsthom's stock 2 percent, to $111.50 per share, and ITT's stock $3.375 a share to close at $69.875 on Mar 3, 1992.

Electronic components, not elsewhere classified, Purchasing, Stocks, Alcatel N.V., ITT, Financial Analysis Software, Stock, Acquisition, ITT Corp.

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Telecom's $265 million deal on Matra

Article Abstract:

Northern Telecom Ltd, the Canadian telecommunications giant is buying a 39 percent share in Matra Communication of France for $265 million. The move marks Northern Telecom's move into the European market, expected to burgeon under the single European market and the new opportunities created by the breakup of the Soviet bloc. Another shareholder in Matra is Daimler-Benz, and the two companies are planning a joint venture company to develop cellular telephones for the Asian and European standard, which is different from that used in the US. Northern Telecom will also invest in a media company being formed by the merger of Matra SA and Hachette SA, although the details of the merger have not been released. Matra Communication is expected to gain enough size and technical resources by the alliance with Northern Telecom to make it a viable player in the European market.

Finance, Telecommunications services industry, Telecommunications industry, Telephone companies, Investments, Joint ventures, Telecommunications systems, Daimler-Benz AG, Northern Telecom Ltd., European Economic Community, Telephone Company, Marketing Strategy, Foreign Competition, Merger, Matra Communication

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As telecommunications companies listen to the siren song of mergers, their equipment suppliers are likely to follow them

Article Abstract:

It seems likely that market pressure will drive telecommunications equipment manufacturers to follow telecommunications services with industry-wide consolidation.

United States, Canada, Acquisitions & mergers, Forecasts, trends, outlooks, France, Regulation and Administration of Communications, Electric, Gas, and Other Utilities, Telecom Equip & Service Standards, Communications Equipment, Communications Equipment Manufacturing, Economic aspects, Forecasts and trends, Company acquisition/merger, Telecommunications equipment, Lucent Technologies Inc., Market trend/market analysis, LU, Nortel Networks Corp., NT, Motorola Inc., Cellular transmission equipment, CGEP.PA

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