Today we see that the big news is that Lucent is merging with Alcatel, and Pat Russo of Alcatel is going to run the show from Paris. I wonder if she really belives that. When Mercedes-Benz bought Chrysler, it was trumpeted as a "merger of equals" - until Chrysler hit a wall, and Daimler moved a management team from Germany to take it over. When US West "merged" with Continental Cablevision, that was also supposed to be a "merger of equals." But one fine day, the folks from Denver ousted Amos Hostetter, Chairman, even though he was the biggest single shareholder in the merged company.
I will confidently predict that Pat Russo's position will be seen to be a smokescreen and in less time than expected, she will be replaced by an Alcatel person.
Any time there is a merger, there is a winner and a loser. Occasionally, it is not as expected, but it is usually predictable. The management of Gillette will soon learn how well they can succeed in the Procter & Gamble culture. So for all those involved in a merger, take the money and run!
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