Report: Lucent Near Merger With Ascend

Lucent Technologies Inc., the No. 1 telecommunications equipment maker, is close to announcing a merger with Ascend Communications Inc. in a deal likely to be valued at more than $16 billion, the London-based Financial Times reported today. The newspaper quoted sources close to the talks as saying that an announcement is likely to be made this week, possibly as early as Wednesday. Under a deal, Murray Hill, N.J.-based Lucent, with a market capitalization of about $152 billion, would take over Alameda-based Ascend, which is valued at about $15.5 billion. The companies are said to have been in talks for several weeks, but they could still fall apart. Lucent, formerly part of AT&T;, is one of the oldest suppliers of traditional phone equipment. Ascend’s background is in data networking equipment for linking computers. On Friday, Lucent shares closed at $115.25, down $1.25 on the New York Stock Exchange, and Ascend shares closed at $71.44, up $1.38 on Nasdaq.