Thread: SELLING MORE IN USA TO FOREIGNERS

SELLING MORE IN USA TO FOREIGNERS

Click here: Lucent, Alcatel must face lawmakers' questions before deal is done
http://www.nj.com/business/times/index. ... xml&coll=5

Lucent, Alcatel must face lawmakers' questions before deal is done

Wednesday, November 15, 2006
BY KEVIN COUGHLIN
Newhouse News Service
WASHINGTON -- Lawmakers grilled officials from Lucent Technologies, Alcatel and the Pentagon behind closed doors here yesterday, in one of the final hurdles to Lucent's proposed takeover by the French company.

President Bush and his staff have until Nov. 21 to make a final decision on the deal, according to a spokesman for the House Armed Services Committee. The companies hope to complete the deal before the end of the year.

Committee members yesterday probed the U.S. security implica tions of Lucent's famed Bell Labs coming under control of a foreign company. Based in Murray Hill, N.J., the labs provide "important" research and development to the defense community, according to a statement released by Deputy Secretary of Defense Gordon England, who testified before the committee. England said the Pentagon conducted a thorough review of the deal, as part of broader government scrutiny by the Committee on Foreign Investment in the United States, which goes by the acronym CFIUS. That multi- agency panel sent its recommendations to the White House on Nov. 6, and the president has 15 days from that date to make the final call on the Lucent-Alcatel tie-up, according to Josh Holly, a spokesman for the House Armed Services Committee. Lucent has pledged to create a separate entity, headed by three top officials from the Clinton administration, to oversee sensitive work at Bell Labs, the birthplace of the transistor. Working closely with CFIUS, "we structured safeguards to protect the security and integrity of the small part of Bell Labs' research that is done for the U.S. government," Lucent Chief Executive Pat Russo said in a prepared statement. Although 85 percent of basic research at the labs supports Lu cent's commercial business, Russo said, the U.S. government will have continued access to the organization even after the sale. Russo is scheduled to continue as CEO of a combined Alcatel Lu cent. She and Alcatel President Mike Quigley spoke to the House committee for about 90 minutes. In prepared remarks, Russo and Quigley stressed that the merger was crucial to their companies' suc cess and the future of Bell Labs. Russo smiled afterward but made no comments. Quigley said he heard no mention during the session of any last-minute legislation to thwart the dea
The House committee's chairman, Rep. Duncan Hunter, a California Republican, had been highly critical of CFIUS during the controversy about a Dubai company's bid to control six U.S. seaports. Hunter has sent two letters to Bush questioning that panel's ability to protect American interests in the Lucent-Alcatel matter.

Three New Jersey congressmen serve on the House panel. "It's very clear to me there has been a very rigorous review process and all the right questions have been asked by our intelligence agencies about this transaction," said Rep. Rob Andrews, (D-8th Dist.). Andrews said U.S. military and economic strength relies heavily on strong telecom companies. The combination would ensure the continued viability of Lucent and Bell Labs, he said. "It appears to me that the deal as it is structured is going to be successful. I don't see anything stopping it," said Rep. Jim Saxton (R-3rd Dist.). "It's good for investors and good for the companies. It may be good for the U.S. We'll see." Rep. Frank LoBiondo (R-2nd Dist.) called it a good hearing, but declined to say more. "Classified is classified," he said. Others were not convinced by yesterday's testimony. "I've got more questions than answers at this point," said Rep. Robin Hayes, a Republican from North Carolina.

It may be good for the U.S. We'll see."

How about not doing it unless they are 100% sure it would be good for the U.S. There is simply too much guess work in congress, they want to jump into everything and then if it don't work we are in big trouble.