Fresh from the sale of its main handset unit to Microsoft for €5.4bn, Finnish equipment maker Nokia is considering whether to suggest a combination with French rival Alcatel-Lucent, several people close to the situation told Reuters.
Nokia has been…
Fresh from the sale of its main handset unit to Microsoft for €5.4bn, Finnish equipment maker Nokia is considering whether to suggest a combination with French rival Alcatel-Lucent, several people close to the situation told Reuters.
Nokia has been interested in Alcatel’s wireless business for a while amid intense competition from other vendors – including Ericsson, Huawei and ZTE – but there are no formal talks underway, one of the sources was quoted as saying.
Nokia declined to comment on the report.
In early September Nokia agreed to sell its devices and services business for €3.79bn, as well as certain patents for €1.65bn to Microsoft, as it struggled to compete with smartphone giants Apple and Samsung.
Following the deal, which is subject to regulatory approvals and a Nokia shareholder vote on 19 November, the Finnish vendor plans to focus on its three established businesses: network infrastructure group NSN, mapping and location services firm HERE, and Advanced Technologies, which focuses on technology development and licensing.
In June, Alcatel-Lucent launched a plan to generate €1bn in fixed-cost savings, €2bn in debt re-profiling over the period 2013-2015, and future debt reductions of €2bn.
The French manufacturer is also considering asset sales. Its wireless business has been estimated at between €1.1bn and €1.5bn, according to Reuters citing analysts.
Alcatel’s new CEO Michel Combes wants to reposition the loss-making company from a telecoms equipment generalist to “an industrial specialist in IP networking and ultra-broadband access”.
