Nokia sets 15 billion on the table for Alcatel
The Finnish group Nokia wants to buy the French Alcatel-Lucent for about 15 billion euros. The Alcatel's share price collapsed after announcement of the deal. The network supplier Nokia is the takeover of competitor Alcatel-Lucent. The Finnish group makes its own shares in a 15.6 billion-euro deal. The new European network giant mean Nokia Corporation.
Headquarters will be Finland, with a "strong presence" in France, Nokia announced on Wednesday. Nokia offers 0.55 new share for a share of Alcatel-Lucent. The deal will be completed in the first half of the year 2016. Nokia CEO Rajeev Suri will lead the new company.
The offer for Alcatel-Lucent from 15.6 billion euros represents a premium of 28 percent on the average price of the stock in the past three months. After the official announcement of the deal, the Alcate Lucent shares on the Paris stock exchange has fallen on Wednesday morning by 10 percent to around 4 euros. Due to the rumors of the merger, the stock had risen but the day before on a similar scale.
Chinese set to Europeans
Network equipment supplier supply technology for telecom companies. While Western incumbents are under increased pressure from aggressive competition from China. Together, Nokia and Alcatel-Lucent could better compete with them. 2019 annual to savings of 900 million euros in operational costs, Nokia has announced. Only the day before, the company had confirmed talks about a merger according to media reports.
Nokia is primarily a network equipment supplier after the sale of the Mobile Division at Microsoft. On Wednesday, the Group also confirmed that all options for its digital mapping service here will be tested. According to information of the financial service Bloomberg sales pitches, were already there with the controversial service intermediary uber and interest of a group of German car manufacturer.
New group with more than 100'000 employees
Nokia had late last year 54'600 employees in the area of network and Alcatel-Lucent a total well 50'000. The Nokia Group generated a turnover of EUR 12.7 billion. The lion's share comes from the network business, the mobile phone Division had sold Nokia to Microsoft. Alcatel-Lucent has revenues of similar magnitude 13.2 billion euros. The Group was formed by a merger between Alcatel of France and Lucent of the United States.
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