Article Abstract:
Lucent Technologies apparently felt it would not enjoy equality with Alcatel S.A. within the French company's $22.8 billion acquisition. Lucent chief Henry Schacht had hoped to be more than Alcatel's unit; though Alcatel would own 58% of Lucent and have more board members. Alcatel's chief Serge Tchuruk, along with Schacht think a deal could still be made in the future, but lower executives see things differently. Meanwhile, Lucent is back to dealing with a weak market and a $5 billion net loss for the fiscal year-half. Alcatel reports a $2.58 billion second quarter loss.
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Article Abstract:
Contract electronics manufacturer Sanmina Corp. is poised to acquire rival SCI Systems Inc. for $4.5 billion in stock. Due to the current slump in technology product sales, experts have been anticipating such mergers of contract manufacturers as a way to cut costs and reduce capacity. The two firms hope to see $100 to$150 milion in cost savings from the deal, as well as immediate addition to earnings.
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Article Abstract:
Avnet Inc. has agreed to acquire Marshall Industries for around $650 million in cash and stock, as the consolidation among electronics parts distributors continues. The acquisition will allow No. 2 Avnet to keep up with the market leader Arrow Electronics Inc. The deal should also allow Avnet to broaden its product line, especially by gaining Marshall's Japanese suppliers, and increase profit margins by eliminating around $40 million in annual administrative costs. Avnet will pay $39 a share in cash, or 0.81569 share of Avnet stock, for each share of Marshall. Roy Vallee, chief executive officer of Avnet, defended the purchase price, claiming that Marshall's stock had been depressed by a long slump in the semiconductor industry. The deal is expected to dilute Avnet's earnings by just a few cents a share in the December quarter, but should not affect earnings in the next quarter, and should increase earnings in the quarter ending in June 2000.
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