Alcatel and Lucent Technologies said they have a plan in place to protect sensitive information related to Lucent's classified work for the U.S. government. The statement followed a letter to President George W. Bush from House Armed Services Committee Chairman Duncan Hunter expressing "grave concerns" over the companies' proposed merger.
Alcatel has agreed to acquire Lucent Technologies for about $13.4 billion. If approved by U.S. and EU regulators, the deal will create a Paris-based telecom equipment giant with wide reach in various components of the industry. The companies said they plan to create a subsidiary to preside over Lucent's Bell Labs, which does sensitive work for U.S. military and intelligence interests.