Alcatel, Pirelli Make Submarine Deal

PARIS, May 7 -- Alcatel and Pirelli have signed an agreement under which Alcatel will pay Pirelli 52.5 million euros for its submarine telecommunication business, and Pirelli will pay Alcatel 45 million euros for its shareholding in Alcatel's submarine telecommunication business.

Alcatel said the transaction will strengthen its position in optical submarine networks. Pirelli said it will strengthen its focus on cables and optic fibers and on developing products for broadband access and second-generation photonics while maintaining an investment in submarine telecommunication systems.

The transaction, subject to customary regulatory approvals, is expected to be completed by the end of the second quarter.

For more information, visit: www.alcatel.com