Will Nokia Make a Bid for Alcatel-Lucent’s Wireless Unit?
Now that Nokia Corp (NYSE:NOK) is gearing up to sell its handset business to Microsoft (NASDAQ:MSFT) for $7.2 billion, industry sources speculate that the tech company will eventually take over Alcatel-Lucent SA’s wireless network equipment unit for $2.7 billion.
According to Bloomberg, Nokia has considered options that involve a combination with the networks business of the suffering French company, but it won’t be until the first quarter of 2014 when its deal wtih Microsoft goes through that it will have the funds to do so. When Nokia does officially sell its handset unit to Microsoft, however, its cash will total its highest balance on record, and analysts believe it’ll be the most reasonable time for it to acquire some of Alcatel-Lucent’s available assets.
Bloomberg highlights Sami Sarkamies, a Nordea Bank AB analyst who explains, “The deal makes complete sense. 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.”