Alcatel-Lucent, the world's largest fixed-line telecommunications equipment maker, began an expected overhaul of its operations Friday, when it agreed to sell a 20.8% stake in French engineering group Thales SA to Dassault Aviation SA for €1.57 billion ($2.27 billion).
Continue reading below
The sale is the first significant disposal for Alcatel-Lucent's CEO Ben Verwaayen, who took up the role in September after Patricia Russo was ousted following almost two years of continuous losses at the Paris group.
Dassault, a maker of French fighter and passenger jets, will pay €38 per Thales share, a 33% premium to the engineering group's closing price Thursday.
The deal will raise Dassault's overall stake in Thales to just under 26%, a holding that will give it some say in the strategic management of Thales, which provides its planes with many of their electronic components.
The deal has the blessing of the French state, which has about 27% of Thales and which had been keen to see the Alcatel-Lucent stake remain in French hands. - Paul Whitfield
