Nokia thinking about approaching Alcatel about tie-up • 3:57 PM
Reuters: Nokia thinking about approaching Alcatel about tie-up • 3:57 PM
•Several sources tell Reuters Nokia (NOK +0.8%) is "discussing internally" whether it should approach Alcatel-Lucent (ALU +4.6%) about a tie-up. However, they caution no formal talks are currently underway.
•Alcatel shares have jumped on the report. They took off earlier this month after the Nokia-Microsoft deal fueled M&A speculation. The Microsoft deal stands to leave Nokia with nearly $20B in total cash, and over $10B in net cash, to go shopping with.
•Once the Microsoft deal closes, Nokia will be focused on telecom infrastructure (via NSN), mapping/location services, and IP licensing. One Reuters source states Nokia held "on again, off again" talks about buying Alcatel's mobile infrastructure business until late 2012.