Nokia in talks for a $15.6-Billion Takeover of Alcatel-Lucent

If we go by what the sources have disclosed, Nokia is said to be in the advanced stages of negotiation for a possible takeover of Alcatel-Lucent’s wireless assets. Nokia is said to be offering 0.55 of a new share for each Alcatel-Lucent share.

The deal, if struck, will equip Nokia better to compete with other telecommunication equipment giants, primarily Ericsson and Huawei. It will also help Nokia to expand its presence in the key United States market where Alcatel-Lucent is a major supplier to operators AT&T (T.N.) and Verizon (VZ.N) and get access to the French firm’s fast-growing, profitable Internet routing business.

At the completion of the deal, which is expected to happen in the first half of next year, Nokia shareholders will own 66.5 per cent of Alcatel, while the latter’s investors will own the remaining stake.

As news of the deal became rife in public, Nokia’s shares fell 3.6 per cent on Tuesday to €7.49, while Alcatel’s rose 16 per cent to €4.48. Based on Tuesday’s closing prices, Nokia’s offer is worth €4.12 per Alcatel share.

This latest announcement marks the latest twist in Nokia’s history; until sometime the Finnish company has been the world’s largest smartphone maker and the highest selling handset brand, before its handset division being sold off to Microsoft last year after failing to compete with the likes of Apple and Samsung. After the sell-off, Nokia started focussing on its equipment business which, according to the company, represents 85 per cent of the ... See more 













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