Nokia will buy Alcatel-Lucent in $16.6B deal
Nokia said it is to buy Alcatel-Lucent in a deal that values the France-based company at €15.6 billion ($16.6 billion) and creates a new European powerhouse in the telecoms equipment market. In a joint announcement on Wednesday , the companies said they have signed a memorandum of understanding under which Nokia will make an offer for all of the equity securities issued by Alcatel-Lucent through a public exchange offer in France and in the United States. Under the terms of the deal, Nokia will give Alcatel-Lucent shareholders 0.55 shares in the combined company for each of their old shares. If the public exchange offer is fully taken up, Nokia would own 66.5 per cent of the combined company and Alcatel-Lucent 33.5 per cent. The combined company will be called Nokia Corporation, with headquarters in Finland and a strong presence in France. In addition to creating a new European equipment powerhouse, the move places both companies in a stronger position to compete with m...