Alcatel is talking to bankers about the loan, which would be the largest loan of the year, to finance the bid as cash-strapped Lucent is unwilling to accept shares as payment, bankers said. Alcatel and Lucent had been in talks that could have led to a merger of equals, with the initiative taken by Alcatel, which wants to break into the carrier market. The sources said that talks did not progress into an advanced stage because of differences on valuation and also as Lucent was apprehensive about getting necessary clearance from authorities in Washington. On the fiber optic deal, bankers also warned that Alcatel could face competition. The loan will be Alcatel's first major syndicated credit as the company has previously relied on bilateral bonds and short-term commercial paper, bankers said.
Bankers expect the sale to be concluded in two to three weeks.
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