Nokia is to purchase 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 and ZTE .The combined company will have about 114,000 employees and combined sales of around 26 billion euros. In mobile equipment it will rank a strong second, with global market share of 35 percent, behind Sweden's Ericsson with 40 percent and ahead of Huawei's 20 percent, according to Bernstein Research. 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.Nokia initially approached Alcatel-Lucent about buying only the wireless business but was rebuffed leading to the broader deal, Alcatel boss Michel Combes told Reuters in an interview.
Alcatel Lucent SA is a France based company that proposes solutions used by service providers, businesses, and governments worldwide to offer voice, data, and video services to their own customers. Shares of ALU remained unchanged at $4.93. In the past year, the shares have traded as low as $2.28 and as high as $4.96. On average, 8453740 shares of ALU exchange hands on a given day and today's volume is recorded at 0.
Telefonaktiebolaget LM Ericsson (Ericsson) is an information and communications technology (ICT) solutions provider. Shares of ERIC fell by 0.46% or $-0.06/share to $12.89. In the past year, the shares have traded as low as $11.20 and as high as $13.28. On average, 3686070 shares of ERIC exchange hands on a given day and today's volume is recorded at 4482755.