Philips and Lucent to Merge Phone Groups

Philips Electronics and Lucent Technologies Inc. said they will merge their consumer telecommunications equipment operations, a move that will create the world’s largest supplier of phones, with $2.5 billion in annual sales. Philips will own 60% of the venture, to be called Philips Consumer Communications, and Lucent will own 40%. The new venture will give Murray Hill, N.J.-based Lucent, the equipment division spun off by AT&T; Corp. last year, the benefit of Philips’ consumer-marketing experience, while providing Eindhoven, Netherlands-based Philips an entry into the U.S. market, analysts said. The companies’ stocks rose on the news. Lucent shares gained $2.125 to close at $69.75 on the New York Stock Exchange; Philips’ American depositary receipts rose $3 to close at $66.25.