According to the paper there have been talks going on for a month and the crucial stage whether to proceed with formal negotiations is expected within the next week.
Sources for the paper stated that the companies are discussing a nearly all-stock transaction, representing about a 20% premium over Lucent’s current value of $33.5 billion.
The price comprises a 20% premium on Lucent’s current value of $33.5 billion, the paper also said that the takeover would be funded almost entirely in shares.
Alcatel shares, since the beginning of the year, have declined some 44%, and in today’s trading fell another 7%.
Alcatel has already admitted placing a bid for the fibre-optic unit of Lucent, but would not comment on its interests in the entire company.
The take over has worried the market, with fears as to whether Alcatel has the financial stability or the necessary ability to amalgamate the US company.
