Acatel

1. The conditions and negotiation factors pushed forth the merger in 2006 that were not present in 2001

According to the case, in 2006 both companies come up with new conditions and negotiation factors. Mainly, France shareholders, they gave their approval to merge Alcatel company and Lucent company. Alcatel's chief executive Mr. Techuruk encouraged 1500 shareholders in Paris by mentioning Alcatel Lucent is truly global and has no equivalent today and won't in future. He also agreed to pay 10.6 billion euro for Lucent company to merge Alcatel and Lucent companies as Alcatel Lucent. The stock swap was valued at one Alcatel American depository share for every five Lucent shares. Both companies agreed to publish English as the official language of the Alcatel Lucent. After considering above conditions and factors, both company shareholders gave their approval to merge Alcatel Lucent as one company. They also decided to deal with both pre-merger and post-merger integration issues such as salaries, benefits, designations and other structural maters by holding a series of meetings between the top HR executives at the two companies.

2. merged company

A merged company which means the combination of two companies where one corporation is completely absorbed by another corporation. After the merging procedure, both companies have to do business as one company. As a result of that, they should invent new identities for the company. They couldn't use their separate identities for the business. Any company, they couldn't merge with another company without the approval of shareholders. Negotiation also very important for merged companies. Negotiation is the process of discussion by which two or more parties aim to reach a mutually acceptable agreement (Strategic International Management, 2011). There are five stages included in the negotiation process. Those stages are preparation, relationship building, exchanging task related information, persuasion and concessions and...