Is Alcatel-Lucent up for sale?


Is Alcatel-Lucent up for sale?

Could Huawei be lining up a bid for Franco-American network vendor Alcatel-Lucent? It could happen, if reports in the business press are to be believed.

An 11% surge in Alcatel-Lucent's share price on Thursday, taking the company's stock to its highest level in eighteen months, came on market talk of an imminent takeover bid, according to Bloomberg.

The rumours have been described as "very vague", and analysts have suggested that a sale to Huawei would be very unlikely as the Chinese firm would have nothing to gain from a technological standpoint.

But considering Huawei's frequent run-ins with the US government over its attempts to buy into the market, another school of thought suggests that attempting to break into the US through acquiring a European company makes a certain amount of sense.

That is if the notoriously protectionist French authorities don't get involved.

This was first published in March 2011

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