Alcatel-Lucent stock is trading higher on loose speculation of a possible takeover by Huawei Technologies and ZTE (both Chinese firms).

The NY Times sums up pretty well why the idea of a buyout from a Chinese firm is unlikely:

“…A merger with a Chinese firm would be complicated, given that Alcatel-Lucent owns Bell Labs, a major military contractor for the United States government. …”

“… Alcatel has been struggling to complete its integration of Lucent and might be reluctant to go through yet another combination. One justification for the deal three years ago was that the enlarged company would compete better with cheaper Chinese manufacturers. Selling out to one of those rivals might be seen as an admission of failure. …”

I’m not planning on buying into this one based on current info.