Alcatel To Acquire Lucent For $13.5 Billion In Stock

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France’s Alcatel has agreed to acquire Lucent Technologies for $13.45 billion in stock, expanding Alcatel’s share of the U.S. market and placing it among the world’s top two makers of communications equipment. The deal values Lucent at $3.01 a share, slightly less than the stock’s Friday closing price of $3.05 but about 7% higher than its price on March 23, the day before Alcatel and Lucent revealed their merger talks.

Lucent shareholders, who will own 40% of the combined company, will get 0.1952 shares of an Alcatel American depositary receipt (ALA) for each share of Lucent, according to a statement released by the companies on Sunday.

Paris-listed Alcatel shares soared 6.4% early trading on Monday.

Lucent Chief Executive Patricia Russo, 53, will lead the new firm, which has yet to be named, while Alcatel Chairman and Chief Executive Serge Tchuruk will become non-executive chairman before heading for retirement.