Posted: Wed, Dec 6, 2006, 8:27 AM ET (1327 GMT)
Alcatel-Lucent announced Monday that it had signed a contract to build the next generation satellite system, then announced hours later it was completing the sale of its satellite unit to another company. Alcatel Alenia Space said Monday that it had signed a contract valued at €661 million (US$880 million) to build 48 small satellites for Globalstar, allowing the satellite phone company to replenish its existing fleet of low Earth orbit communications satellites. The new satellites will be similar to the existing satellites, with masses of 700 kilograms each and a similar communications payload, although each satellite will have a longer lifetime of 15 years. The first satellites will be ready for launch in 2009. Later Monday Alcatel-Lucent announced that it reached an agreement to transfer its majority take in Alcatel Alenia Space to French defense company Thales Group in exchange for stock and €670 million (US$890 million). The agreement, first announced earlier this year, will close by April 2007, and given Alcatel-Lucent a 21-percent stake in Thales, second to only the French government.

Related Links:

•  Space News article (sub. req.) about Globalstar contract
•  AP article about Globalstar contract
•  Wall Street Journal article (sub. req.) about Thales Group deal
•  Alcatel press release
•  Thales Group press release