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Nokia confirms talks of Alcatel-Lucent merger

by Todd Haselton | April 14, 2015April 14, 2015 4:00 pm PDT

merger

Nokia recently confirmed that it’s in discussions with Alcatel-Lucent on a major merger. Several reports have pointed to Nokia’s interest in Alcatel-Lucent, and this is the first time the Finland-based company has admitted something is indeed on the table.

Nokia published a public note of its discussions with Alcatel-Lucent on its website in an effort to address media speculation of the deal. “In relation to recent media speculation Nokia and Alcatel-Lucent confirm that they are in advanced discussions with respect to a potential full combination, which would take the form of a public exchange offer by Nokia for Alcatel-Lucent,” Nokia explained. “There can be no certainty at this stage that these discussions will result in any agreement or transaction. A further announcement will be made when appropriate.”

Earlier reports suggested Nokia is interested in Alcatel-Lucent’s wireless business and patents, but the company did not clarify if it’s actually seeking out owning all of those assets or just a part of the business. Alcatel-Lucent provides carriers with a lot of the hardware used to operate wireless networks, and several industry watchers have suggested that it makes sense for Nokia to snap up the company.

“We believe that such a potential deal would allow Nokia to significantly improve its presence in the U.S. with AT&T and Verizon (where Ericsson and Alcatel-Lucent are key suppliers),” Swiss bank Credit Suisse said in a recent research note, according to CNBC. The confirmation drove shares of Alcatel-Lucent up about 8.5 percent, while shares of Nokia are currently trading down about 4.4 percent.

Nokia CNBC

Todd Haselton

Todd Haselton has been writing professionally since 2006 during his undergraduate days at Lehigh University. He started out as an intern with...

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