Nokia Oyj is in talks to purchase smaller telecom equipment maker Alcatel-Lucent , a deal that would combine the industry's two weakest players but could pose challenges in cutting costs and overcoming political opposition.In a joint announcement, the Finnish and French companies said they were in "advanced discussions" on a "full combination, which would take the form of a public exchange offer by Nokia for Alcatel-Lucent." The two, which have been seen as a possible combination for the last several years, cautioned that the discussions could still fall apart.The pair are a good fit in terms of products and geographies, and bulking up would help them cut costs as they try to catch up with leaders Sweden's Ericsson and China's Huawei. Nokia would expand its presence in the key United States market where Alcatel-Lucent is a major supplier to operators AT&T and Verizon.But the track record of mergers in the industry is spotty, in part because of the difficulties of cutting costs in a R&D intensive business where companies cannot simply drop products that global telecom operators rely on.
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 $4.35. In the past year, the shares have traded as low as $2.28 and as high as $4.50. On average, 7166350 shares of ALU exchange hands on a given day and today's volume is recorded at 30763639.
Telefonaktiebolaget LM Ericsson (Ericsson) is an information and communications technology (ICT) solutions provider. Shares of ERIC traded higher by 0.7% or $0.09/share to $12.95. In the past year, the shares have traded as low as $11.20 and as high as $13.28. On average, 3663530 shares of ERIC exchange hands on a given day and today's volume is recorded at 3533498.
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