Alcatel-Lucent Merger Creates Telecom Equipment Giant

Alcatel and Lucent Technologies agreed on a merger Sunday to compete with telecommunication equipment-making rivals like Ericsson and Cisco Systems. The new company will shed about 8,800 jobs to cut costs. Alcatel shareholders will control 60 percent of the new company, the two companies said, adding the merger would add to “growth in revenues and earnings based on the market opportunities for next-generation networks.”