The credit crunch provided a convenient excuse today for the head of Alcatel Lucent, Patricia Russo.

Never mind the botched execution of the €30 billion merger, the endless profit warnings and continued disappointments for investors who have seen the shares tank 59 per cent since the merger.

Today, the US born executive pinned the blame for the fourth-quarter loss and miserable 2008 guidance in part on the “macro-economic environment”.

For many in the industry it is a wonder that Ms Russo has clung on so long.

Though she is deemed a great sales person who is good at maintaining relationships with the group’s key customers her strategic oversight and ability to deliver value to investors leaves, they say, much to be desired.

Serge Tchuruk, the chairman - who oversaw the merger with her - is a key supporter. However, despite denials, he looks himself to be on the verge of resigning.

Also in Ms Russo’s favour, say some people close to the group, is the lack of candidates lining up to take up such a poisoned chalice.

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