Nokia has just sent a press note confirming discussions with Alcatel and plans of public exchange offer by Nokia for Alcatel-Lucent.

Statement regarding Nokia/Alcatel-Lucent media speculation

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.

A further announcement will be made when appropriate.

Chatters of Nokia buying Alcatel’s wireless business has made it to internet many times in past. Now the speculation has returned, only to be reported as nearly done via credible sources. Bloomberg reports via people familiar with the matter that announcement of an agreement between Nokia and Alcatel  may come as early as this week.

Nokia Oyj is in advanced negotiations to acquire part of Alcatel-Lucent SA to strengthen its telecommunications-equipment business and better compete with Ericsson AB, according to people familiar with the matter.

Espoo, Finland-based Nokia may announce an agreement to buy Alcatel’s wireless assets as early as this week, the people said, asking not to be identified because the discussions are private. While a full takeover of Alcatel has also been examined, a purchase of the wireless unit remains the most likely scenario, the people said. No agreement has been reached and a deal could still fall apart, they said.

This deal if inked may help Nokia immensely in acquiring a leadership position in its Networks business in US market and also bolster its position in China.

A speculation about Nokia selling its HERE business is also doing rounds. Some analysts expect that Nokia may use proceedings form HERE sales in funding Alcatel acquisition.

Via: Bloomberg