Lucent, Alcatel confirm in merger talks

NEW YORK: U.S. telecom equipment maker Lucent Technologies and its French rival Alcatel confirmed late on Thursday they are discussing a potential merger of equals.

The companies, which have a combined market capitalisation of more than $34 billion, said in a joint statement that the deal, if concluded, is meant to be "priced at market" meaning that no premium on their stock prices is contemplated.

But they cautioned there can be no assurances any agreement would be reached and said no further comment would be provided until an agreement is reached or the discussions are terminated.

A spokeswoman for Lucent declined to comment on how long the negotiations have been going on, or other details.

Lucent, which is based in Murray Hill, New Jersey, makes equipment for telecoms such as Verizon Communications and Sprint Nextel Corp.

Lucent's first-quarter revenue fell 12 percent to $2.05 billion due to a slowdown in spending by its customers. Its U.S. revenue fell 7 percent, while international revenue dropped 20 percent.