Alcatel Lucent: Sorry, but we're not for sale - Top Telecom M&As for 2009

Alcatel-Lucent comes into the top 10 M&A's rumors/hoaxes bin after a report in a French magazine Challenges emerged last summer that it was entertaining a deal to be bought by a Chinese vendor.  

It was not long before industry analysts and the media started speculating that the unnamed Chinese vendor was Huawei. 

Given Alcatel-Lucent's struggles to return to profitability since the company was formed in 2006 and increased competition from Chinese vendors such as Huawei and ZTE, the rumors of being taken over by an emerging power such as Huawei seemed plausible. According to market research Dell Oro, Huawei and ZTE had doubled their respective market share in the past year. But as fast as the rumors emerged they were quickly deflated. 

Huawei spokesperson Ross Gan quickly shot down the rumors. "Huawei is not in discussions with Alcatel-Lucent." Gan did in a Dow Jones Newswires interview that it would be open to possibilities, but would not reveal what those were. 

Meanwhile, the only thing that Alcatel-Lucent's CEO Ben Verwaayen would say about the Huawei acquisition rumors is that the idea of being acquired by a Chinese vendor are "not more plausible than yesterday or the day before."

Maintaining that Alcatel-Lucent will become profitable in 2011 and that he's comfortable with his company's presence in the Chinese telecom market, Verwaayen did say that he realizes that there are new competitors that have come on the scene.  

Alcatel Lucent: Sorry, but we're not for sale - Top Telecom M&As for 2009