April 29 (Bloomberg) -- Alcatel SA and Lucent
Technologies Inc. are ``confident'' they will
address U.S. Representative Duncan Hunter's security
``concerns'' arising from their planned combination
in a $13.4 billion share swap.
``We have put in place an approach that
will˙protect sensitive U.S. technologies,''
Paris-based Alcatel spokeswoman Regine Coqueran
today said in an e-mailed statement. ``Both Lucent
and Alcatel have already committed to form a
separate, independent U.S. subsidiary to
manage˙sensitive˙business with U.S. government
agencies.''
Hunter, chairman of the House Armed Services
committee, said in a letter to U.S. President George
W. Bush that he has ``grave concerns'' with the
Alcatel's acquisition of Lucent, the Financial Times
reported today. The deal might allow countries where
Alcatel does business, including Burma, China, Cuba,
Iran and North Korea, to acquire technology and
other sensitive information from Lucent, the
newspaper said, citing the letter.
Hunter's letter is the first sign of political
opposition to Alcatel's purchase of Murray Hill, New
Jersey-based Lucent. U.S. politicians, citing
national security risks, earlier this year forced
Dubai's government-owned DP World to seek an
American buyer for terminal operations at six U.S.
ports. Last August, congressional concerns about
energy security persuaded Chinese oil company Cnooc
Ltd. to abandon attempts to buy Unocal Corp.
Hunter is Republican from California.
`Precedents'
Alcatel's purchase of Lucent, the biggest U.S.
maker of telephone equipment, would challenge Cisco
Systems Inc. as the world's largest maker of
networking gear. Alcatel and Lucent had a combined
$25 billion in sales last year.
Alcatel noted today that Lucent has nominated
former U.S. Defense Secretary William Perry, former
Director of the Central Intelligence Agency James
Woolsey and ex-Director of the National Security
Agency Kenneth Minihan to compose the board of the
subsidiary handling business with U.S. government
agencies. Lucent's research unit, Bell Laboratories,
does work for the U.S. government.
``There are substantial precedents for the
approach we plan to pursue,'' Alcatel's Coqueran
said.
U.S. Senator Charles Schumer -- a New York
Democrat who opposed DP World's purchase of the six
U.S. ports -- said April 6 he will support the
Alcatel-Lucent transaction as it isn't a threat to
U.S. security.