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Last Updated: Thursday, 7 September 2006, 19:29 GMT 20:29 UK
Green light for big telecoms deal
Alcatel boss Serge Tchuruk
Alcatel boss says the deal will create a world leading firm
Shareholders of French telecoms equipment firm Alcatel and its US rival Lucent have approved their $10.7bn (8.4bn euros, 5.7bn) proposed merger.

The deal, first announced in April, will create a market leader with annual sales of about $25bn.

But the merged firm, whose headquarters will be in Paris, is expected to cut about 9,000 jobs.

The firms' equipment provides the backbone for fixed-line, mobile phone and internet phone networks.

'World leader'

The deal received the support of more than 85% of Alcatel investors.

Support for the deal among Lucent shareholders was less clear-cut with a preliminary count showing investors holding 52% of outstanding shares backing the deal - above the 50% level required for approval.

Alcatel's chairman said he was delighted with the outcome.

"This significant transaction is about creating the world leader in our industry," said Serge Tchuruk.

The deal, which has already been approved by the European Commission and US anti-trust regulators, is expected to be completed by the end of the year.




SEE ALSO
Alcatel merger 'will save $1.7bn'
03 Apr 06 |  Business
Alcatel and Lucent agree to merge
02 Apr 06 |  Business

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