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News Editor

Alcatel-Lucent: security a concern

Mar 28, 20061 min
Data Center

The proposed “merger of equals” between Alcatel and Lucent could be held up by the same type of national security concerns that apparently played a role in scuttling the acquisition of intrusion prevention specialist Sourcefire by Check Point.

According to a story in this morning’s New York Times, the U.S. government is concerned about the possibility of Lucent’s storied Bell Labs – and its work related to weapons systems – falling under the control of a foreign company that is one-and-a-half times the size of Lucent. That the combined company would probably be based in Paris is sure to rankle some – especially the pols and pundits.

From the Times story: “National security concerns related to Bell Labs are among the unresolved issues being discussed by executives, these people said. Options said to be considered include completely spinning off the division, which has about 9,000 employees, or separating a unit that does classified work, using a corporate structure frequently employed in the military industry. But they said the companies hoped that none of those remedies would be necessary.”

News Editor

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