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Copy of The Alcatel-Lucent Merger: What went wrong?
Transcript of Copy of The Alcatel-Lucent Merger: What went wrong?
First 2001 negotiation failed, final merging deal in 2006.
Alcatel paid 10.6 billion for Lucent.
Managerial and Cross-Cultural conflicts.
Both CEO and Chairman resigned.
New leaders hired to solve integration and communication issues. Negotiation First negotiation failed due to conflicts on the ownership structure.
Due to critic market situation and agreement upon ownership, second negotiation successful. Silvia Ancora
Catrine Vang Cultural Differences Declared and advertised MERGER OF EQUALS while in reality it was a TAKEOVER.
Alcatel worthed $8 billion more than Lucent.
Why? Protectionist and psycological motives.
Managerial and cultural problems created because of the “fake merger of equals” operation Merger or Takeover? Recommendation Cross Cultural Training
Strong leadership Thank you! Cultural Miscommunication Alcatel CEO, Serge Tchuruk:
There should not be any worries about cultural issues on the merging of Alcatel-Lucent, as Alcatel has a very diverse workforce (Silver, Young and Abboud 2006). Cross Culture Negotiations