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Nokia To Buy Alcatel-Lucent To Grow In Telecom Equipment


Ron Burgundy
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The logo of Alcatel-Lucent is pictured at the company headquarters in Boulogne-Billancourt near ParisBy Jussi Rosendahl and Leila Abboud HELSINKI/PARIS (Reuters) - Nokia will buy Alcatel-Lucent in an all-share deal that values its smaller French rival at 15.6 billion euros ($16.6 billion), building up its telecom equipment business to compete with market leader Ericsson. Nokia's takeover of Alcatel-Lucent will redefine a telecom equipment sector suffering weak growth prospects and pressure from low-cost Chinese players Huawei [HWT.UL] and ZTE. The combined company will have about 114,000 employees and combined sales of around 26 billion euros. The Finnish company will give Alcatel-Lucent shareholders 0.55 shares in the combined company for each of their old shares, resulting in 33.5 percent of the entity being in Alcatel's hands and Nokia having the remaining 66.5 percent if the tender offer is fully taken up.




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