A planned merger deal between telecom equipment providers Alcatel of France and Lucent of the USA hit some snags this weekend. CNN reports:

Merger talks between U.S. telecom equipment maker Lucent and Paris-based Alcatel appeared to have hit a delay Saturday, as the fate of the French company’s satellite businesses remained unresolved.

Alcatel SA had planned to sell its satellite activities to defense electronics company Thales SA, but those talks have stalled over demands by European Aeronautic Defense and Space Co. that its own Astrium satellite unit be included in the operation.

The delay was said to have been caused by doubts whether Alcatel’s satellite business would be part of the deal, as this was supposed to be spun off and sold to European defense electronics company Thales.