Nokia's cash deal paves way for Alcatel-Lucent buyout- report

By IVCPOST Staff Reporter

Oct 21, 2013 06:16 AM EDT

The sale of Nokia's handset unit to Microsoft Corp had paved the way for a EUR 2 billion or USD 2.7 billion buyout of the wireless network equipment unit of Alcatel-Lucent. According to a Bloomberg report, Nokia would be receiving EUR 5.44 billion from Microsoft next year as payment for the latter's acquisition of its handset business. This would bring the Finnish firm's cash reserves to more than EUR 14 billion. This figure would be the highest amount recorded on its balance sheet since its establishment.

Last month, a person with knowledge of the matter told Bloomberg that Nokia was already considering its options. This included a possible merger with the mobile phone network unit of Alcatel-Lucent.

Nordea Bank Analyst Sami Sarkamies said a deal would make complete sense. He said, "Nokia will have the financial flexibility to do this kind of deal and Alcatel needs to slim down. There is a relatively high likelihood of this deal happening."

© 2024 VCPOST, All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics