China and Alcatel Create Alcatel Shanghai Bell - Set to be a Multibillion Euro Telecom Technology Leader.Business Editors DALLAS--(BUSINESS WIRE)--Oct. 23, 2001 Alcatel's key operations in China to be integrated with Shanghai Shanghai (shăng`hī`, shäng`hī`), city (1994 est. pop. 12,980,000), in, but independent of, Jiangsu prov., E China, on the Huangpu (Whangpoo) River where it flows into the Chang (Yangtze) estuary. Bell to spearhead growth in Asia Pacific China's Ministry of Information Industry (MII 1. (body) MII - A consortium of Microsoft, IBM, and Intel. 2. (storage) MII - A broadcast component video tape format licensed by Panasonic. ) and Alcatel today will sign a memorandum of understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. to create a Company Limited by Shares, Alcatel Shanghai Bell (ASB ASB Asbestos ASB Arbeiter Samariter Bund (German medical help organisation) ASB Anti-Social Behaviour ASB Accounting Standards Board (UK FRC) ASB Aarhus School of Business ), integrating Alcatel's key operations in China with Shanghai Bell. Alcatel will hold 50 percent plus one share in Alcatel Shanghai Bell (ASB) with Chinese entities taking the remaining shares. ASB will offer Alcatel's comprehensive portfolio of products to Chinese communication operators and will be a leading supplier to the China market. The Minister of Information Industry, Wu Jichuan said, "Alcatel is the first global company with the vision to open up its global technology to a Chinese company. Establishing ASB is an important milestone in China's telecom industry and will contribute to the development of world leading telecom technologies in China." ASB will more than double the number of research and development engineers currently in Alcatel China, Shanghai Bell and Shanghai Bell Alcatel Mobile Communication combined, giving it 3,500 engineers in three years time. ASB will become one of Alcatel's major global R&D centers. Core technologies to be developed by ASB for domestic and global markets include next generation fixed and mobile networks. Alcatel expects ASB to export more than US$1 billion in its first three years of operation. In forming ASB, Alcatel is the first international telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. equipment supplier to consolidate its businesses in China into a single company. Alcatel also will be the first international company to establish a Chinese company limited by shares in the telecommunication sector. The legal structure of a company limited by shares allows ASB the flexibility to be listed in China in the future. "This strategic investment builds on a long-standing successful partnership between MII of China and Alcatel and opens a new chapter for Alcatel's business in China," said Alcatel chairman & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Serge Tchuruk Serge Tchurukdichian (born November 13, 1937), known as Serge Tchuruk, is a French businessman of Armenian descent. He was the Chief Executive Officer and chairman of Alcatel (a global telecommunications company) till the end of November 2006 and is now the chairman of . "We are creating Alcatel Shanghai Bell to be the market leader in China." Alcatel expects ASB to benefit immediately from bringing together Alcatel's cutting-edge technologies with Shanghai Bell's strong positions in China. "I am confident Alcatel's shareholders will see this major deal substantially contributing to our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. business performance," said Mr. Tchuruk. "It is a landmark in our drive to build the Asia Pacific region as a strategic center of Alcatel's world-wide business." Alcatel expects ASB to achieve US$2 billion sales in the first year of operations. The new company will have a positive impact on Alcatel's earnings per share in 2002, before any additional sales. Under the Chinese agreement, Alcatel will acquire from the Chinese shareholder, 10 percent plus one share of Shanghai Bell. Via a separate agreement Alcatel will also purchase the entirety The whole, in contradistinction to a moiety or part only. When land is conveyed to Husband and Wife, they do not take by moieties, but both are seised of the entirety. of the Belgian Belgian having some relationship to Belgium. Belgian barge dog see schipperke. Belgian black pied cattle black, Belgian dairy cattle. Belgian blue dual-purpose cattle; blue, white or blue roan. government's 8.35 percent stake in Shanghai Bell. At the conclusion of the two transactions, Alcatel will own 50 percent and one share, an increase from the current 31.65 percent. Alcatel will pay a total of US$312 million in cash for the two transactions. The establishment of ASB is subject to the final approval of China's relevant authorities. Alcatel China, Shanghai Bell and Shanghai Bell Alcatel Mobile Communication will at closing be integrated into ASB. All of Alcatel's other telecom subsidiaries in China will be integrated into ASB within 24 months of its establishment. About Alcatel Alcatel builds next generation networks, delivering integrated end-to-end end-to-end a pattern of anastomosis in which severed ends are matched and united, in contrast with other patterns such as end-to-side or side-to-side. Usually applied to anastomosis of the intestine. voice and data networking solutions to established and new carriers, as well as enterprises and consumers worldwide. With sales of Euro 31 billion in 2000 and 110,000 employees, Alcatel operates in more than 130 countries. For more information, www.alcatel.com |
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