14 DAY TRIAL // News about Nokia's negotiations with Alcatel-Lucent for the acquisition of its wireless unit has been making headlines in the last couple of days.
Although the information wasn't confirmed by Nokia or Alcatel, the fact that the source of this leak had been reliable in the past was an indication that it might be of high accuracy.
Today, Nokia has come forward with an official statement regarding its negotiations with Alcatel-Lucent. The announcement is aimed at the press and confirms that the companies are now in talks, but Nokia also highlights the fact that the outcome of the these negotiations is still to be determined.
“In relation to recent media speculation Nokia and Alcatel-Lucent confirm that they are in advanced discussions with respect to a potential full combination, which would take the form of a public exchange offer by Nokia for Alcatel-Lucent.”
“There can be no certainty at this stage that these discussions will result in any agreement or transaction,” says Nokia in the press statement.
Another announcement might be issued to make the deal official
It's also worth mentioning that the Finnish company will provide the media with a further announcement soon after these negotiations finish, if it's appropriate.
Nokia plans to sell its HERE subsidiary to the highest bidder and use the money to acquire Alcatel-Lucent assets. However, the Finnish giant has not confirmed this information in the press release probably because it's of no concern in regards to the Alcatel-Lucent negotiations.
It's unclear whether or not Nokia will still be able to acquire Alcatel or parts of the French company's business if it doesn't get rid of HERE.
According to Nokia, its HERE maps business is now worth €2 billion ($2.1 billion), so anyone willing to pay such an amount will be able to acquire it.
Nokia won't accept a much lower bid than the amount mentioned earlier, reports claim. It remains to be seen whether or not the Finnish company will be able to expand its presence on the network infrastructure market with the acquisition of Alcatel-Lucent, so stay tuned.