Pressure rising on Alcatel-Lucent Chief Executive Ben Verwaayen to show progress
Buyout and bankruptcy are not the only choices, and I think not likely choices. Your links are dated, except for one.
(excerpt) "Analysts say Alcatel-Lucent, given its already high-rate of cash burn, can't really afford to make such deep cuts as NSN. And such a move could irk the French government, which owns a 2 percent stake in Alcatel, given the sensitivity around job cuts in the run-up to presidential election in May.
France recently blocked layoff plans at state-owned nuclear reactor maker Areva SA (AREVA.PA) and scuppered talk of job cuts at car maker PSA Peugeot Citroen (PEUP.PA). [ID:nL5E7ML3LL] [ID:nL5E7MH2QZ]
Finnish-German NSN said on Wednesday it would axe nearly a quarter of its workforce to save 1 billion euros ($1.3 billion) a year. It also plans to exit roughly half a dozen business lines in which it has a weak position, including fixed broadband access, fixed voice and wireless technology WiMAX.
"Alcatel won't make a big announcement like that of NSN, especially given the delicate political context in France right now," said one analyst.
Do you think politics in France would promote bankruptcy or allow a merger with a Chinese firm? ALU is between a rock and a hard place with the need to cut costs through work force reductions, but an inability to do so because of the culture/politics of France. My bet is that Ben will cut where he can and try to muddle through. We'll see. Good luck.