Panorama.am
15:31 25/03/06
ARONYAN YIELDS HIS POSITION
After yesterday’s round of Chess tournament in Monaco our compatriot
Levon Aronyan chares the 5th position with 6 points with Boris Gelfand
and Peter Lecko. Yesterday Aronyan ended bot fast and slow games in a
draw.
To note, the leaders of the list are Vishvanattan Anand and Alexander
Morozevich with 7.5 points. The latter is going to be Aronyan’s rival
today./Panorama.am/
Panorama.am
14:43 25/03/06
WORK DONE FOR SHOW
The enthusiasm of the participants of the `Tree planting of Unity’
made the chief procurator to review the terms of the program: `I have
already decided and we are going to carry out 10 years of
tree-planting of unity. It’s high time we shifted to concrete words
from empty talks,’ A. Hovsepyan said during tree-planting organized in
`Haghtanak’ (Victory) park. The tree-planting was organized by joint
efforts of Kanaker-Zeytun Community and 50 compatriotic unions.
To note, 15 days ago `Haghtanak’ park was given to the above mentioned
community. Community head Arayik Kotanjyan said: `If we carry out a
good trimming here, we shall restore the trees that were here years
ago. Today 3000 trees are going to be planted in the park territory
of 30 thousand square meters.’
Arayik Kotanjyan also says: `Give me some time and I’ll put the park
in good order.’ And that time is about a year as the irrigation system
works well.
After watching the lovely dancing of juvenile groups the Mayor, the
Procurator and many other officials had a glass of wine blessed by a
priest and got down to work at once. By the way, as the Mayor said the
trees planted last year showed 70% of stickiness. `If we go on working
like this we shall finish establishing green areas in the city in the
coming 2-3 years. Several more years and we shall secure the green
areas determined by the main plan of the city,’ Yervand Zakharyan
assured. As he stated about 90 000 trees will be planted in city areas
having irrigation system this spring instead of 32 000 planted last
year./Panorama.am/
TREND Information, Azerbaijan
March 25 2006
Nizami Bahramov: Necessity to continue peaceful negotiations will be
known at the Eve of co-chairmen ` s visit to the region
Source: Trend
Author: S. Ilhamgizi
25.03.2006
Necessity to continue peaceful negotiations will be known on the Eve
of OSCE Minsk group co-chairmen ` s visit to the region, head of the
Azerbaijani community of Nagorno-Karabakh told Trend.
A meeting between the OSCE Minsk group co-chairmen was held in
Istanbul on March 20.
Bahramov said that during the OSCE meetings in Washington and
Istanbul sides agreed on necessity to continue peaceful negotiations.
Co-chairmen may soon visit the region as well, he said. `Co-chairmen
might soon organize the meeting between foreign ministers of
Azerbaijan and Armenia,’ Bahmanov said.
OSCE Minsk group, American co-chairman, Stephen Mann has earlier
announced that the committee will do everything possible to achieve
the positive results this year. `All meetings are held behind the
closed doors and Azerbaijani and Armenian foreign ministries do not
comment the talks. However, position of the Azerbaijani president,
Ilham Aliyev is to continue the peaceful process. On the other hand
the president has been always saying that if the talks will not yield
positive results Azerbaijan will change its policy. As for now, fate
of the talks will be decided on the Eve of the co-chairmen `s visit
to the region, `he said.
Agence France Presse
24 mars 2006 vendredi 4:48 PM GMT
Une fusion Alcatel-Lucent couronnerait la carrière de Serge Tchuruk
(PAPIER D’ANGLE)
PARIS 24 mars 2006
Une fusion avec son rival américain Lucent serait pour le PDG
d’Alcatel Serge Tchuruk, 68 ans, le couronnement d’une carrière
agitée, qui après des succès dans le pétrole, notamment à la tête de
Total, l’a amené à affronter les difficiles restructurations dans les
télécoms.
Celui que des spécialistes du secteur appellent “le survivant”, parce
qu’il est resté à la tête d’Alcatel, tandis que John Roth (Nortel),
Lars Ramqvist (Ericsson), Henry Schacht (Lucent), Michel Bon (France
Télécom) ou George Simpson (Marconi) ont tous été balayés par
l’éclatement de la bulle internet, a obtenu de se maintenir à la tête
de son groupe jusqu’à 70 ans, en 2008.
Il avait obtenu ce sursis il y a un an, au cours d’une assemblée
générale des actionnaires houleuse, tandis que son conseil
d’administration nommait comme directeur-général adjoint
l’australo-britannique Mike Quigley, qui devenait ainsi son nouveau
dauphin, après le départ de Philippe Germond.
Mais Serge Tchuruk, qui avait accepté “en homme de devoir” en 1995 la
présidence d’Alcatel, en pleine crise après les démélés judiciaires
de son prédecesseur Pierre Suard, tenait à aller au bout de la
mission d'”homme providentiel” dont il se sentait investi, pour
assurer la croissance durable d’un groupe qu’il a complètement
restructuré.
Ayant dû tailler à la hache dans les effectifs du groupe, qu’il a
quasiment diminué de moitié, après avoir même officiellement annoncé
qu’il voulait faire d’Alcatel “un groupe sans usine”, Serge Tchuruk a
réussi à relancer sa société sur des marchés porteurs, en faisant
notamment le leader mondial de l’ADSL, et à rassurer les marchés
financiers. Après des années de pertes abyssales, Alcatel est
redevenu bénéficiaire en 2005.
La nouvelle initiative de Serge Tchuruk a d’ailleurs été accueillie
avec faveur par les investisseurs, qui ont fait gagner 4% à l’action
vendredi.
Du baume au coeur pour ce patron réputé pudique et modeste, mais
aussi coléreux et têtu, qui a réussi à survivre à un séisme financier
majeur: la chute de 38% de son action en une journée, en septembre
1998, où des dizaines de milliards étaient partis en fumée en
quelques heures, à la suite d’un avertissement sur résultat. La
crédibilité de la direction d’Alcatel fut durablement entamée auprès
des marchés financiers.
Pourtant, Serge Tchuruk, bénéficiait d’une image impressionnante,
forgée au cours d’une longue carrière à l’international, d’abord chez
Mobil où durant seize ans il a changé de poste tous les dix-huit
mois. Après avoir rallié en 1979 la direction de Rhône-Poulenc, il a
ensuite ranimé les activités chimiques de Charbonnages de France,
avant de prendre en 1990 la tête de Total, dont il a préparé la
fusion avec Elf qu’éxécutera son successeur Thierry Desmarest.
Polytechnicien, ce fils d’émigrés arméniens, né à Marseille, ne se
satisfaisait pas de la santé retrouvée par Alcatel grace à sa
prééminence mondiale dans les offres “triple Play”, combinant voix,
accès internet et télévision. Il a aussi multiplié les efforts depuis
un an pour rattraper ses retards dans les télécommunications mobiles,
prendre des parts de marché dans les pays émergents, et diminuer la
dépendance d’Alcatel envers les politiques d’investissement des
opérateurs de télécoms.
Alors que la tentative de rapprochement avec Lucent en 2001 avait
échoué à cause du prix à payer, jugé excessif, Serge Tchuruk, fort de
performances devenues nettement meilleures que celles de Lucent, peut
penser que sa ténacité lui permettra cette fois d’aboutir.
From: Emil Lazarian | Ararat NewsPress
PRESS RELEASE
Armenian American Society for Studies on Stress & Genocide
130 W 79th Street
New York, NY 10024-6387
Tel: 212-362-4018
Fax: 201-941-5110
E-mail: [email protected]
Web:
You are invited
TO A SYMPOSIUM AND WORKSHOP
ON
Genocide denial & healing: The case of the Genocide of the Armenians
On
Friday, 7 April 2006 -7 PM
at
Fordham University, 113 W 60th St., (Off 9th Avenue) NYC
12th Floor Faculty Lounge
Professor Staub: Recipient of 2006 AASSSG Outstanding Achievement Award
Professor Ervin Staub, Professor of Psychology at the University of
Massachusetts
`Roots of Evil & Denial: The case of Genocide of the Armenians,’ and a
presentation by
Professor Elif Shafak, Professor of Literature, University of Arizona
`Silence and Secrets in Women’s Stories: Tracing the Effects of the
Massacres and Deportation of Armenians in 1915 in Contemporary Women’s Culture in
Turkey.
Family Constellations by
Dr. Sophia Kramer-Leto and Dr. Chiara Hayganush Megighian Zenati
Special Performance by: Armenian Dance Group from Long Island
Armenian Dances from Historic Western Armenia
Chairperson: Dr. Anie Kalayjian, Fordham University and President of AASSSG
&
Association for Disaster & Mass Trauma Studies.
KRIEGER Essay Contest winners will be announced and certificates given
Hosted by: ARMENIAN AMERICAN SOCIETY FOR STUDIES ON STRESS & GENOCIDE
(AASSSG), Fordham Psychology Association, SPSSI NY, Association for Disaster &
Mass Trauma Studies, and Fordham Psi Chi
REFRESHMENTS WILL BE SERVED
Admission: free with Fordham ID
For information contact Dr. Kalayjian E-mail: [email protected]_
(mailto:[email protected]) , visit: _www.meaningfulworld.com_
(http://www.meaningfulwo rld.com/) , or phone: 201 941-2266
World War 4 Report, NY
March 25 2006
Iran, Denmark host religious dialogue conferences
Submitted by Bill Weinberg on Sat, 03/25/2006 – 14:40.
Things are more complicated than they look – in the world generally,
and especially in Iran. As the intransigents in Iran and Denmark
alike line up for a depressing and potentially apocalyptic “clash of
civilizations,” conferences on inter-religious dialogue are held in
response to the crisis in both countries. True, the “dialogue” seems
to have been rather harshly proscribed at the Iran conference, and
the Danish one seems to have been very low-profile. Still, a glimmer
of hope that they were held. We wonder: were they at all coordinated?
>From Iran’s official agency IRNA, March 19:
ISFAHAN – The “Global Conference on Constructive Interaction among
Divine Religions: A Framework for International Order” concluded work
in this historical city in central Iran Sunday.
The two-day event which hosted 160 scholars from 38 world countries
aimed at safeguarding the sublime position of divine religions in
today world and highlighting the need for protecting religious sacred
sites from terrorist attacks and destruction.
As the first in the kind to be held in world, the conference provided
an apt opportunity for scholars belonging to different divine
religions including Muslims, Christians, Jews and Zoroastrians to
express their views on inter-faith dialogue and raise their voices to
condemn any forms of sacrilegious acts against holy religions.
Isfahan was designated as the Cultural Capital of the Islamic World
on January 1, 2006.
Was this just a propaganda-fest for the regime? We hope not, although
this clip, also from IRNA March 19, is less than encouraging:
ISFAHAN – A Spanish scholar here Sunday stressed that the conflict
between Iran and the US was indeed a war between “good and evil.”
A researcher and writer on theological topics Raol Gonzales made the
remark in an interview with IRNA on the sidelines of the two-day
“Global Conference on Constructive Interaction among Divine
Religions: A Framework for International Order,” which opened here
Saturday morning.
Gonzales blamed the tyrannical nature of the US President George
Bush, who believes that every single person who is not with him is
surely against him, as the main cause of the most of the conflicts
underway in different parts of the world today.
Describing victory of the Islamic Revolution in Iran as wonder which
shocked the whole world, Gonzales said it was only a miracle that a
country, which relied heavily on the US aid and followed its policies
unquestioningly, managed to confront and fight it.
Referring to the Iraqi imposed war on Iran, the scholar said the
attack launched by Iraq against Iranian nation was not a mere war in
its usual sense but rather an event which was supported by many
hegemonic powers in the world to suppress the justice-seeking voice
of Iranian Muslim nation.
He further believed the recent attacks on the Holy Shiite shrines was
a plot hatched by the US to sow discord among Muslims and followers
of other religions.
This one, again from IRNA, smells a bit better:
ISFAHAN – The Archbishop of Armenian Christian Church Nerses
Buzabolyan here on Sunday stressed that the identical origin of all
monotheistic faiths is the element of convergence among all divine
religions and said any insult to the sanctities of each of them would
hurt the feelings of the followers of other faiths as well.
The archbishop made the remark in an interview with IRNA here Sunday
on the sidelines of the “Global Conference on Constructive
Interaction among Divine Religions: A Framework for International
order,” which opened here Saturday with participation of 160 scholars
from 40 countries.
Buzabolyan commented that the spiritual tenets, shared by all the
divine religions, provide them with a common background in that all
the religions, believing in God as the central part of their faith,
share the basic principle that the oneness of God means all human
beings are equipped with wisdom to “feel and see” the presence of God
in every moment of their lives. That, he added, would definitely
prevent them from committing such silly acts as undertaking
sacrilegious actions against any of the divine religions.
He further hailed the ongoing inter-faith dialogue conference as the
first preliminary step towards establishing dialogue among divine
religions because, he said, it would certainly help promote unity and
solidarity among followers of different faiths in a number of
practical ways.
He believed the interaction and exchange of views among scholars
during the event would help them remove walls and barriers and wipe
out many baseless and hollow prejudices.
Archbishop Buzabolyan went on to express hope that the present
gathering would encourage many other similar events in other
countries resulting in establishment of a lasting dialogue among
religions.
Of course inerfaith unity in opposition to free speech and secularism
is also less then encouraging. IRNA, March 18:
ISFAHAN – An Iranian priest stressed that insulting Holy Prophet of
Islam (PBUH) would in fact be an offensive act towards all divine
prophets.
Talking to IRNA at the sideline of the ‘Global Conference on
Constructive Interaction among Divine Religions: A Framework for
International Order’ here on Saturday, Hacoop Arekelian said all
prophets tried to convey a common message which was revealed to them
by single God.
He believed the conference was of great importance in that it aimed
at consolidating unity among followers of all divine religions and
institutionalizing respect to divine religions among people.
At least Jews were invited. And at least they are acknowledging that
the Holocaust happened. IRNA, March 19:
ISFAHAN – A leading Austrian Jewish Rabbi said here that holocaust
catastrophe in Europe, which victimized millions of Jews, is nowadays
used as an instrument for suppressing the rightful demands of the
world nations.
Rabbi Moishe Fridmann, who leads the Association of Anti-Zionist Jews
in Austria, made the remark late Saturday on the sidelines of the
two-day “Global Conference on Constructive Interaction among Divine
Religions: A Framework for International Order”.
Now, did the one in Denmark ever happen? This AP account is from Feb.
23:
COPENHAGEN – Denmark will host a conference next month to promote
religious dialogue following the uproar over the Prophet Muhammad
cartoons, the Foreign Ministry announced on Thursday.
The government will also give “a significant financial contribution”
to a U.N. programme aimed at overcoming prejudice between Islam and
the West, and support an Islamic festival in Copenhagen, Foreign
Minister Per Stig Moeller, said in a statement.
The conference on religious and cultural dialogue will take place in
the Danish capital on March 10, ministry officials said.
“This conference will bring together the prominent Islamic preacher
Amr Khaled, two Islamic scholars from the Arab world and three Danish
experts,” Moeller said.
He said the government was planning a range of initiatives to promote
“respectful dialogue,” partly drawing on advice given by Muslim
countries.
“In Denmark there is a genuine respect for the religious feelings of
other people and we acknowledge that many Muslims felt gravely
insulted by these controversial drawings,” the foreign Minister said.
Ministry officials said they would contact Arab and international
media to spread the Minister’s message, and posted a link of his
videotaped statement on the ministry’s Web page.
Zaman Online, Turkey
March 25 2006
AI: Freedom of Expression in Turkey is Limited
By Foreign News Desk, Istanbul
Published: Saturday, March 25, 2006
zaman.com
The Amnesty International, AI, launched a worldwide campaign to
collect as many signatures as possible against Article 301 of the
Turkish Penalty Code (TCK).
The human rights watchdog organization will ask the international
community to pressure Turkish officials to revoke Article 301, a
clause in the penal code of the country that the organization
believes restricts the freedom of expression.
The human rights supporters, publishers, writers, and journalists
were taken to court because they tried to deconstruct the official
records of history or because they caricaturized officials, AI told.
There is, however, slight improvement in the field of human rights
that Turkey should be rewarded for.
When prominent author Orhan Pamuk was acquitted of speaking about the
number of Armenians and Kurds killed in the past, Turkey achieved a
slight advancement on the freedom of speech. But, AI called the
Turkish officials to invalidate Article 301 and to drop charges
against people who objected to this clause in the TCK.
The signature campaign will continue from April 1 to 10.
Zaman Online, Turkey
March 25 2006
Intolerance
by MEHMET KAMIS
The modern man is upset and rattled by whatever is different. He
tends to view anyone who does not resemble him, dress like him, live
like him and behave like him as a threat.
Generalizations are not always good; however, modern European
countries such as Germany and France do not enjoy the company of
anyone who appears different, or to be more precise, they refuse to
recognize the right to existence of people who are different. France,
for instance, in the early 20th, century took over all the cultural
and ethnic elements which were active at that time on French soil and
gave them French characteristics. All Jews and Muslims in the Iberian
Peninsula were either put to the sword or forced into exile when
Spain took over the peninsula. There is no Muslim community left in a
peninsula that was under Muslim rule for hundreds of years. Exchange
or takeover of power might have been commonplace during that period;
however, what was not normal was totally rejecting everything that
existed before, that is, eradicating them all.
Remember the workers who were sacked because they talked to each
other in their own languages. Something similar happened in Germany
as well. The media gave extensive coverage to the story of a Turk who
was denied entry into a club because he spoke in Turkish, even though
he was a permanent member of that club.
Foreigners in Europe are being forced to integrate. This is, it is
being said implicitly or explicitly: `I can only recognize your right
to live here if you resemble me. Or else, there is no place for you
here.’ The conscience test is convincing evidence that the idea of
living together with someone different is not welcome. The West is
scared of anything different. There is a general tendency in the West
to consider anyone who is different or thinks differently an
adversary and a potential threat.
The Ottomans recognized the rights of different belief systems and
cultures and enabled them continue their existence under the empire.
There is no example in history of the empire unleashing a
scorched-earth policy in any of the areas the Ottomans conquered. In
Istanbul, besides the Muslims, non-Muslims like the Armenians,
Greeks, Jews and Bulgarians not only had the right to live without
any problems, they were also allowed to operate their own
foundations, hospitals and schools.
Anatolia’s difference is rooted in the of norms that promoted
tolerance among different lifestyles, making it possible for
different people with different backgrounds to live together
peacefully. Partisans of Caliphate Ali, Sunnis, Armenians, Kurds,
Turks, Circassians, people of Syrian origin and even Yezidis
maintained their identities and customs for hundreds of years. If
Anatolia had the prevailing worldview of our age, then none of the
different ethnic or religious identities would have survived.
The modern age is virtually one dimensional. One language, one
thought, one belief, one ethnic origin, one food, one style of
dressing, and so on. This is exactly what fearing anything that is
different means. The `other’ is seen as a bogeyman who threatens and
liquidates. The West wants to dispose of the `other’ or make it look
like itself. This desire for resemblance is like a matter of life and
death.
The ideological backbone of the state does not consider the `other’
qualified enough to become a citizen of the country he/she wants to
live. The state gauges how much the `other’ resembles it. The state
does not look at the expertise, skills and expertise of the `other’
but rather questions his/her worldview. This is the basic idea:
`Whatever is different is definitely dangerous.’
Democracy is not only a form of government. Nor is it just the
freedom to vote for someone from among a group of identical people to
become a ruler. It is a way of life that compels us to acknowledge
the existence of someone different from us and recognize his/her
identity.
Different people used to live together on Turkish soil. Maybe from an
intellectual viewpoint they couldn’t, however, life was built upon
the principle of sympathizing with the `other’ and of recognizing the
other’s existence. Intolerance surfaced when we alienated ourselves
from ourselves. Fear found its way into our subconscious. We resorted
to denying anyone who does not think or live like us the right exist.
That’s not us.
Anatolian Times, Turkey
March 25 2006
Turkey Attaches Great Importance To Its Relations With US, Gonul
WASHINGTON D.C. – Turkish National Defense Minister Vecdi Gonul has
indicated, “relations with the United States is one of cornerstones
of Turkish foreign policy.“
Gonul delivered a speech on “Evolving Security Environment and
Turkey`s Strategic Role in Eurasia“ in a conference organized by Los
Angeles World Affairs Council.
“There have been Turkish-U.S. military relations at the highest
level,“ he underscored and noted that the volume of cooperation
between Turkish and the U.S. defense industries amounted to 13
billion USD over the last 20 years.
Stating that Turkey and the United States attached great importance
to prevention of proliferation of mass destruction weapons and
ballistic missiles, Gonul recalled that Turkey, as an ally of NATO,
stayed at the front line against a possible threat of missile which
might be developed in the Middle East.
Gonul noted that Turkey always played a role of bridge between the
east and the west.
“The latest developments have shown there is lack of dialogue
between different communities worldwide,“ Gonul stressed that
Turkey`s EU membership would give an important message underlining
that different cultures could exist together peacefully.
IRAQ
Pointing out to Turkey`s cooperation in U.S.-led war in Iraq, Gonul
recalled that 4,990 sorties were conducted in the Turkish airspace,
Turkey`s Incirlik base was used and the parliament approved a
government motion permitting the dispatch of soldiers to Iraq.
Gonul noted that Turkey has doubled its economic and commercial
relations with Iraq since 2003, indicating that 50 percent of
processed oil need of Iraq was provided by Turkey. He stressed that
one fourth of electricity need of this country would also be provided
by Turkey this year.
Stating that Turkey supported peace process in Iraq, he underlined
that it also attached special importance to territorial integrity of
Iraq.
Gonul said that Turkish public had concerns over discriminative
attitude of Kurdish population in Iraq. “Natural resources of Iraq
belong to all Iraqi people,“ he stressed.
Noting that Iraqi election was a great step taken on the way of
democracy, he said that the new Iraqi government should focus on
constitutional amendment.
Gonul said that Kirkuk was still a very important matter affecting
the stability in Iraq, noting that the destiny of Kirkuk should be
determined by all Iraqi people.
TERRORIST ORGANIZATION
He noted that terrorist organization PKK was continuing its
activities in the north of Iraq, stressing that Turkey expected all
relevant parties to solve this problem. “Turkey considers that Iraqi
government and coalition forces have equal responsibility to end
those activities there,“ he said.
TURKEY`S RELATIONS
Gonul said that Turkey had sound and special relations with Israel
and Palestine.
Stating that Hamas should assume a reasonable attitude, he said that
Turkey was ready to assist efforts necessary to resume peace talks
within the scope of Road Map.
TURKISH-ARMENIAN RELATIONS
He indicated that Turkey considered that Upper Karabakh issue was the
main obstacle in front of peace and cooperation in the region,
stating that a peaceful solution to this matter would contribute to
development of regional cooperation and would normalize
Turkish-Armenian relations.
Spartanburg Herald Journal , SC
March 25 2006
The Splice That Binds Two Giants
By KEN BELSON
New York Times
Published March 25, 2006
This article was reported by Ken Belson, James Kanter and Andrew Ross
Sorkin and was written by Mr. Belson.
For Patricia F. Russo, pulling Lucent Technologies back from the
brink of bankruptcy has not been enough.
As chairman and chief executive of the company, the nation’s biggest
telecommunications equipment maker, she has been under pressure for
the last two years to find a long-term solution for its troubles. On
Thursday, it became clear that a $13.6 billion deal with Alcatel of
France itself a survivor that has made a comeback in the turbulent
global telecommunications industry was perhaps the only viable option
left.
Ms. Russo, who took the helm at Lucent in 2002, defied skeptics by
returning the company to profitability by cutting thousands of jobs,
eliminating billions of dollars in debt and promoting wireless
technology. But righting a ship and driving it full steam ahead are
two very different things.
For all her efforts, Ms. Russo has been outflanked by her competitors
who moved faster into new fiber optic technologies and by rapid
consolidation among her customers in the phone industry. Under these
circumstances, many analysts have predicted that it was only a matter
of when, not whether, Ms. Russo would seek a merger. The transaction,
which the companies characterized as a merger of equals, could be
announced as soon as Monday.
But no matter how the deal is labeled on Wall Street or in
Washington, the new entity will face many hurdles. The
telecommunications landscape has been swept by ever larger mergers
including AT&T’s plan to buy BellSouth, announced this month creating
fewer clients with more leverage to demand cheaper equipment prices.
At the same time, up-and-comers from Asia like Huawei have been
cutting prices steeply to break into new markets. These newcomers
have been able to compete with old-line manufacturers because of the
broad shift toward equipment that runs on open standards, not the
proprietary technology sold by Lucent, Nortel and others.
This shift has allowed AT&T and other big carriers to sidestep Lucent
and buy equipment directly from low-cost makers in places like Taiwan
or China.
Still, analysts and investors were upbeat about the merger because by
teaming up, the companies could reduce their costs by consolidating
some of their operations. For Alcatel, a merger would bring Lucent’s
very profitable C.D.M.A. wireless technology used by Verizon
Wireless, Sprint Nextel and others. Alcatel could take advantage of
Lucent’s long relationships with the Bell companies. The companies
could also combine their fiber optic units and perhaps gain enough
power in the market to reverse the long decline in prices. Lucent
shares rose 24 cents, to close at $3.06 yesterday. The deal is not
expected to include a premium on Lucent’s market value. Alcatel’s
American depository receipts rose 25 cents, to close at $15.70.
The details of the possible deal continued to trickle out early
yesterday.
Ms. Russo, 53, would be chief executive of the combined company,
people close to the discussions said. The enlarged entity would have
its “executive office” in Paris, though it would continue to have
major operations in both the United States and France. Its board
would be split evenly between the merger partners.
Alcatel is not a new player in the North American market. In fact,
since the mid-1980’s it has considered itself more of a global
company than a French one, even adopting English as the official
language for its multinational staff.
Most notably, Alcatel, like Lucent, has had to recover from a dire
business downturn just a few years ago. The company, led by Serge
Tchuruk, 68, an English-speaking French citizen of Armenian heritage
who became chairman and chief executive of Alcatel in 1995, has also
cut thousands of jobs in recent years.
In 1998, Mr. Tchuruk got a harsh lesson when the stock plunged 38
percent in a day after he said earnings would miss analysts’
estimates. He began cutting costs and focusing on the core
businesses. The global work force, once 115,700, is now 58,000, with
most of the layoffs outside France.
Mr. Tchuruk, who is expected to retire as chief executive in May and
remain as nonexecutive chairman, also shed unprofitable divisions
like mobile phones to focus on network sales to developing markets
and sales of high-speed Internet equipment and digital subscriber
lines.
Those efforts, many analysts say, allowed Alcatel to survive when the
telecommunications sector crashed in 2000. In 2005, Alcatel recorded
net profit of about $1.12 billion.
The company generates 15 percent of its sales in North America and 15
percent in Asia, compared with 12 percent in France. Only one French
company France Télécom is among its 10 biggest customers.
Analysts said the two companies, which had merger talks in 2001, were
a good fit, combining the growing reach of Alcatel in
developing-world markets and its leadership in broadband equipment,
fiber optic networks and Internet television with Lucent’s strength
in the wireless equipment market in the United States, where Alcatel
is seeking growth.
Lucent, under Ms. Russo’s direction, has also pushed forward with
next-generation technology like IP Multimedia Subsystem, or I.M.S.,
which is intended to integrate wireless and fixed-line networks. AT&T
and Cingular, for instance, have signed contracts to work with
Lucent.
“I look at the deal with Alcatel and I think it’s chocolate and
peanut butter, they fit so perfectly,” said Paul Sagawa, who covers
Lucent for Sanford C. Bernstein, an investment research company, in
New York.
A merger with Alcatel would be the final unraveling of Lucent, a
highflier whose stock once traded over $63 a share, in 1999. It has
been through so much already, including losing more than two-thirds
of its revenue since 1999.
With its customers the Bell companies and the big wireless carriers
consolidating, “the only way to respond is not to compete but to
merge,” said Richard Nespola, the chairman and president of the
Management Network Group, a telecommunications consultant.
The merger would not necessarily mean significant job cuts at Lucent,
analysts said, because deep cuts could potentially harm Lucent’s
leadership in the wireless equipment market and its long
relationships with the Bell companies. Any future layoffs, they said,
would probably be at headquarters rather than in operational jobs.
On Lucent’s sprawling corporate campus in Murray Hill, N.J., Lucent
employees were adopting a wait-and-see attitude about the merger.
Sophia Tsai, who works in the new- product introduction department,
said she had received an e-mail message from Ms. Russo, discussing
the possible merger without going into detail.
Ms. Tsai, like others interviewed, recognized that the merger could
mean layoffs and department mergers.
“It is possible that this is a merger of equals, and Lucent will
remain in control,” she said. “We have a strong leadership here.
There might be some changes. It depends on who takes the lead.”
George M. Calhoun, a professor at the Stevens Institute of
Technology, said that “looking at the size of both companies, there’s
no doubt Alcatel will be the Daimler and Lucent will be the
Chrysler.”
But, he added, “keeping Pat in her position will reassure” Lucent’s
customers who are “scratching their heads whether they are going to
have to deal with new people. ”
Mr. Calhoun also said that naming Ms. Russo as chief executive of the
proposed merged company might give Alcatel access to government
contracts that foreign companies were typically prohibited from
bidding on.
But Steve Kamman, an analyst at CIBC World Markets, said regulators
and lawmakers could have “serious concerns” about an Alcatel-Lucent
deal because Bell Labs, Lucent’s research arm, has worked closely
with various security agencies. This could lead to a long and
potentially contentious approval process, he said.
A Lucent spokesman, William Price, said company executives were not
available for comment yesterday.
Over all, nearly half of Lucent’s revenue now comes from wireless
equipment, up from 37 percent two years ago. At the same time, sales
from wireline equipment have been shrinking and now make up a quarter
of revenue, down from 37 percent in 2003. As for new products like
I.M.S. technology, which Lucent hopes to rely on, the markets are not
large and may take years to grow.
In the meantime, Mr. Kamman said, “the whole industry is a
fixer-upper.” Ten years ago, he said, “this would have been
earth-shattering, but the forces in play are so enormous that this
merger is underwhelming.”