An AT&T outsider and a veteran join to run new spinoff; even though Schacht got top job at Lucent, he and McGinn work well; but they face big problems

Article Abstract:

AT&T CEO Robert Allen's surprise decision to choose Henry Schacht as CEO of spinoff Lucent Technologies, and select Richard McGinn as president, has resulted in a capable management team, but the executives are faced with the difficult task of establishing Lucent as a competitive communications equipment company. Lucent is operating without the financial and technological support of AT&T, and the executives must fight archrival Northern Telecom for vital communications equipment contracts with the RBOCs and other large providers. They must also ensure that AT&T continues to buy its equipment from Lucent instead of other companies in the market. These marketing challenges may be transformed into obstacles if McGinn and Schacht are unable to remain competitive while re-engineering the company out of AT&T's domineering shadow. Analysts report one of Lucent's first steps will be to revamp the company's line of telephone and wireless products.

Telecommunications services industry, Telecommunications industry, Lucent Technologies Inc., LU, Company restructuring/company reorganization, Reorganization and restructuring, Schacht, Henry B., Company Employee

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AT&T's planned equipment spinoff is winning praise

Article Abstract:

The new telecommunications company formed following the breakup of AT&T may be one of the most successful new ventures for the company. The company, which produces network switching and transmission gear, microchips, consumer telephones and office-phone systems, is in a favorable position to expand. The company will also serve to generate huge revenues and eliminate conflict between it and other areas of the business. Without the breakup the new company would have been significantly weakened and unable to compete in emerging markets. The equipment business has yet to reach the level of the major figures in the industry and will face fierce competition. AT&T's Network Systems business and consumer-phone unit will be the centerpieces of the new company, generating a combined total of $14 billion a year.

Planning, AT&T Corp., T, Company Restructuring Company Reorganization, Company Operations

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Siemens AG strengthens U.S. position with Stromberg-Carlson Corp. merger

Article Abstract:

Siemens AG of Germany acquires Stromberg-Carlson Corp of Lake Mary, FL, and forms the third-largest telecommunications equipment company in North America. The merger between Stromberg-Carlson and the US operations of Siemens will give Siemens a stronger position in the competitive, $6 billion US market. AT and T and Northern Telecom Ltd control 80 percent of the telephone switching equipment industry in North America. The new company, called Siemens Stromberg-Carlson, will have 4,000 employees and an expected annual revenue of between $400 million and $500 million. Analysts estimate the company's market share will be around 7.5 percent.

Mergers, acquisitions and divestments, Siemens AG, Switches, New Company, Telecommunications Industry, Foreign Competition, Acquisition, Stromberg-Carlson Corp., Siemens Stromberg-Carlson

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