Nokia is reportedly have internal discussion on whether to tie-up with French rival Alcatel-Lucent (ALU).
No official talks are currently underway, and the news was leaked by people familiar with internal discussions.
From Bloomberg news:
A tie-up with Alcatel-Lucent would help Nokia challenge Ericsson AB, the biggest maker of wireless networks, and faster-growing rival Huawei Technologies Co. Alcatel-Lucent, which is seeking to sell assets and reduce costs, has contracts with Verizon Wireless and AT&T Inc. in the U.S., a market where Nokia’s network business is trailing competition.
Alcatel-Lucent jumped as high as 2.73 euros and advanced 5.6 percent to 2.68 euros at 10:56 a.m. in Paris, valuing the company at 6.2 billion euros ($8.4 billion). Nokia declined 1 percent to 4.85 euros in Helsinki, giving the company a market value of 18.2 billion euros.
A joint operations would make financial and industry sense, should such a merger happen, with the two companies then holding the biggest patent portfolio in the communications equipment worldwide.
ALU declined to comment on the news.