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Lucent Agrees To Merger

The combined companies expect annual revenues of more than a billion, but security concerns have U.S. senators asking questions.

Lucent and Alcatel have agreed to merge to create a telecom equipment company with sales of just over $25 billion. Alcatel, based in France, would control 60% of the shares in the combined operation, and an independent entity would oversee sensitive contracts with the U.S. government.

But nothing's for sure. Some U.S. senators last week were still asking questions about the deal.

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