Seems the Nokia Alcatel deal speculation is gaining force day by day. Our tipster “Mark” has just sent us this link which talks about how derivative market has this strong rumor going on that Nokia will soon buy Alcatel for strengthening its position in networking market. This speculation has in fact made Alcatel derivatives fall to the lowest level since January 2008.
The French-American credit risk derivatives, namely Alcatel-Lucentin CDS:ien prices have fallen to the lowest level since January 2008 due to Nokia speculation, -tells the news agency Bloomberg.
One Bloomberg analyst has also mentioned that Alcatel may decrease its workforce by 14% which again hints about likelihood of Nokia buying them.
according to Agence France-Presse (AFP), the ING Group, a Bloomberg analyst Aengus Mcmahon, Alcatel-Lucentin, plans to reduce its staff by 14 percent increase, in the likelihood of the Nokia trade.
Acquisitions are full of risks and trade offs, but personally I see this deal as a logical next step for Nokia growth strategy as far as NSN is concerned.
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