spacetoday.net: Alcatel, EADS to restart discussions about alliance

Posted: Tue, Apr 29, 2003, 7:36 PM ET (2336 GMT)
The chairman of French telecommunications company Alcatel said he is willing to restart negotiations with EADS about combining the two companies' satellite manufacturing units. Serge Tchuruk said Tuesday that he expected negotiations with EDAS to begin again in the near future. The negotiations would involve a merger between EADS' Astrium satellite manufacturing division with Alcatel Space. Astrium and Alcatel Space are the two largest satellite manufacturers in Europe, serving government and commercial customers, but a drop in demand for commercial satellites has generated interest in a merger as part of a wider industry consolidation. The French government is strongly interested in such a merger, hoping that the combined company would be more efficient and be able to produce satellites less expensively. EADS has previously tried to work out a merger, but has been rebuffed by Alcatel. Alcatel recently announced plans to cut 650 jobs in its space unit because of depressed demand for satellites.