Lucent Outlines Plans for Separate Subsidiary for U.S. Government Work

In order to satisfy national security concerns regarding its proposed merger with Alcatel, Lucent Technologies outlines its plans to create a separate subsidiary for sensitive research and development. The unit will have a separate, independent board to be approved by the U.S. government.



The company to noted that while most of the research and development work done by Bell Labs today is commercial, it does some classified work for the U.S. government. To ensure the appropriate level of protection for that type of work, certain sensitive contracts Bell Labs and Lucent have with U.S. government agencies will be transferred to a separate, independent subsidiary. This subsidiary will be separately managed by a board that will be composed of three independent U.S. citizens acceptable to the U.S. government.



Lucent has nominated William Perry, former Secretary of Defense, James Woolsey, former director of Central Intelligence and Kenneth Minihan, former director of the National Security Agency to the independent subsidiary's board.



Bell Labs President Jeong Kim, a former nuclear submarine officer in the U.S. Navy, will continue to lead Bell Labs, which will remain based in New Jersey.

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