That's about 7 cents, and the market has some inefficiencies. Also, there is a slight chance that something goes wrong with the deal. It still has to be approved by Nokia shareholders, and if it is not, the market will probably see that as having negative implications about ALU, meaning ALU's stock will likely be hurt by the rejection. All of this is very unlikely, which is why the difference after dividends are removed is only a few pennies.
The agreement permits Nokia to continue paying standard dividends. This year's payment was $.16, so Nokia shareholders can expect to get one more such dividend (which ALU shareholders do not get) before the two combine.
What I read is that they are closing out the first round of bidding today, but that it goes on to a rebidding process for those who fall short. In other words, no announcement short term. We shall see.
Excuse me but where did you get the absurd idea that Combes shifted away from innovation? Or more specifically, what portion of your body did you pull that out of? ALU has been noted for its innovation under Combes as priorities were shifted from spending R&D dollars on legacy products and concentrating on new technology. Ever heard of Nuage? That will save ALU, and now Nokia, as the market shifts from hardware. Ever read any reviews of their innovation? Combes biggest problem was trying to keep all this going in a company that was driven to the brink of bankruptcy by his predecessor, saddled with a toxic $2 billion loan that would have begun coming due next year. Ever wonder why the genius you attribute Combes success to is still looking for work 2 years later while Combes has been hired on again before he has even left ALU? I know - everyone but you is stupid and can't see the enormous success of 92-cent Ben. LOL. Even Ben would be embarrassed by your attempts to make him something he is not.
So tell me how this works again. Ben ran the company for 4 1/2 years. He devised numerous plans, all failed, and through his tenure, the company mounted huge losses, the stock lost 75% of its value, and he was forced to sell profitable assets and take on a huge loan of over $2 billion secured by the company's patents. He then announces he is leaving because he can't execute a plan, the Board ushers him to the door with no severance, Combes enters, and over the next two years the stock triples. But this is all because of a wonderful but unexecutable plan Ben supposedly left behind but Michel messed up on his way to tripling the company's value? And you expect anyone to believe that? LOL. That's almost as believable as attributing Apple's success under Steve Jobs' run to John Sculley's plan. Almost, but not quite. And you wonder why people consider you this board's fool!
Holy! You mean Combes wasn't hired until Jan. 1 2014? Ben continued to secretly operate the company after the Board announced he supposedly left on March 31 2013? It was Ben who arranged to take out the Goldman loan less than a year after he created it? Well thanks for updating me on reality. I never knew.
Yes, ALU was on solid footing on Dec 31 2013 after Combes took out that disastrous Goldman loan, slashed expenses, and began focusing on products for the future, not the past. It was the year prior, under his predecessor's administration, that the company was on the edge of bankruptcy.
Excuse me but where in Ben's unexecutable plan was the part about taking out the $2 billion plus Goldman loan? Can you imagine where ALU would be today if it faced having to start paying that back next year? The answer is in bankruptcy court. Even Ben realized that when he called for a "fresh perspective." That's why Ben's $0.92 shares became $4 shares under Combes. Those who stuck with Combes made a fortune, while fools who shorted him got killed. Remind you of someone you know? LOL. You should have listened to Ben when he told you that after 5 years of a declining stock price and mounting losses it was time for a fresh perspective.
Here's a quiz. Who said, "After five years in the business, you have to reflect. The task ahead is focused on execution, execution, execution. Maybe that’s not my natural strength, and maybe it’s good for the company to get a fresh perspective." This man was correct, as the price of his company's stock tripled after it got a "fresh perspective." I guess he should be remembered as a prophet, though not a profit.
Are you saying Combes is so incompetent he couldn't even execute his own plan? What kind of a Chief EXECUTIVE officer is so incompetent he can't even EXECUTE a plan, and has to admit it?
Wow, you really are so desperate with your hatred of Combes you once again go and disprove the very lie you of which you try to sucker others into believing. Take your losses for shorting Michel like a man, girly boy. If there is going to be a 4th quarter collapse, then quite obviously Michel made a brilliant move selling in the second quarter. He gave ALU shareholders plenty of time to get out. And if your dubious theory that Siri will suffer a Verwayaan sized collapse in Q4 comes to pass, those who have sold can decide whether to but back again and perhaps experience another huge ride up like they did under Combes. Like I said, this ship is under Siri's command now. Fellow longs, if you believe he will steer it to better seas, stick with him, and if you are not so sure, take your Combes winnings off the table.
Herby - you made a great call and like those of us who put our faith in Combes, you made a lot of money. But just be aware that your investment is no longer in Combes. He will be gone in a few weeks, and has been irrelevant since he signed the deal with Nokia a few weeks back. Your investment is now with Suri. He may well make you a bunch of money as did Combes, I don't know, but it is important to realize that in effect you have traded in your stock in one company and its CEO for a different company and its CEO.
You keep claiming Michel cut R&D. Where do you get that from? The only cuts I ever saw were to stop investing in fixes for 2G and 3G. Are you claiming ALU should have invested more in yesterday's technology? Should Michel have spent money on perfecting rotary phones? I think there was a department dedicating to perfecting the rotary phone during Ben's tenure.
Are you saying Michel cut too many employees? Should have stopped at 10k and not reduced one no longer needed job beyond that? Are you saying he cut too many French workers? You are the first person I have seen claim that ALU's problem is that it has too few workers on the payroll. Make that two. I forgot Ben.
And my original point, which you failed to address, is if we are heading into a vicious price war, as the article implies, then #5 of 5 in the business, cash poor ALU desperately needed to combine with a stronger player to survive. Michelwas ahead of the game. Had he not been, the company would have been back to the edge of goodbye as it was with Bankruptcy Ben.
Notice how you avoid addressing the point. You got caught making the argument for the sale to Nokia by posting something you thought would bash Michel. Instead it makes him look brilliant. You can't fool anybody as to what the price was before and after Ben came on board, and before and after Michel came on board and arranged for the company's sale. Those prices are all readily available on the internet. My net worth skyrocketed while you went broke, and now you are so blinded by hate that you can't even recognize that all you do anymore is make a fool of yourself.
I don't know whether this analyst is right, but if so, it makes Combes' deal with Nokia look brilliant. If we are headed into a price war, 4 of the 5 competitors in the infrastructure business have the cash to withstand a prolonged war. One does not. Do you know which one that is? ALU needs a reasonably robust and profitable market to meet its essential goals of profitability and cash flow positive. If pricing becomes cutthroat, ALU cannot survive that long, but NOKALU has the resources to take it to a return to pricing sanity and the economic recovery which will lead to increased customer spending. Go ahead. Say it. "Thank you, Michel."
Well you finally see the obvious. Yes, Mr. Combes was hired to salvage a company that your beloved idol Ben Verwayaan had driven to the edge of bankruptcy. Ben finally resorted to borrowing an additional $2 billion the company had no way to repay to delay it a little longer. So the Board hired Michel to repair a company that no longer had the size to make it on its own to the point that it would be salable, so the shareholders would get something, rather than the "alu going 2 zero" nothing it would get in BK. It required a certain amount of bluffing, but he reeled in a big fish and saved the shareholders. Instead of zero we get $4. So of course the Board paid him for completing his mission so well, and the shareholders, whom you dishonestly claim he sacrificed, get $4 instead of Ben's $0, and the payment Combes gets from us amounts to around one-third of a penny per share. The only people he sacrificed were shorts like you!
Combes was hired to sell the company, or more specifically, restore its finances so that it would be salable. He accomplished his mission so the Board paid him the bonus he earned and sent him on his way.