HELSINKI: Nokia confirmed to acquire French Rival Alcatel-Lucent in a 15.6billion euro all share deal and said that exploring the sale of its mapping and location unit.
The takeover is significant also in France, as evidenced by the fact that the chief executives of both companies presented its details to François Hollande, the President of France, on Tuesday. Nokia may require the proceeds from the sale of HERE to take control of shares in Alcatel-Lucent in the event that not all shareholders approve of the terms of the public exchange offer. The network equipment maker has offered shareholders 0.55 shares in the combined company per each share in Alcatel-Lucent.
Altogether, 33.5 per cent of shares in the combined company will be in the hands of Alcatel-Lucent shareholders after the scheduled completion of the takeover early next year.
The takeover entails considerable risks for Nokia as consolidating two major corporations can prove unexpectedly difficult and painstaking. On Wednesday, shares in Nokia fell 1.5 per cent on the Helsinki Stock Exchange and shares in Alcatel-Lucent more than 15 per cent, with initial reports suggesting that investors were unsure about the acquisition.
