Alcatel merges cable businesses with Dutch rival

11 Feb 2004

French equipment maker Alcatel yesterday merged its fibre-optic and communication cable subsidiaries with those of Dutch cable manufacturer Draka in what is widely expected to be the first of several divestments of loss-making units by the Paris-based company. The joint venture, which will be 50.1% owned by Draka, is expected to have revenues of about EUR670 million in 2004 and break even from the following year. Alcatel, which since the telecoms downturn has adopted a strategy to focus on communications solutions, is also rumoured to be close to finalising a merger of its satellite manufacturing operations with Italian counterpart Finmeccanica, as well as being on the lookout for a buyer for its mobile handset operations.