Trade market is abuzz with talks of Nokia buying Alcatel-Lucent. This sent Alcatel’s share price up by 4% yesterday due to brisk volume purchase by investors. As per the rumor Nokia will use money received from Microsoft for this purchase. The rumor also puts a bidding price of 4.10 per share by Nokia.
People close to Nokia however reject it as baseless rumor and mention that there is no such short or long-term plan of Nokia involving purchase of this size. Also, Nokia already planned to use EUR 5 billion received from Nokia-Micrsoft deal for optimizing its capital structure and paying back to investors. So, it hardly looks like a valid rumor!