Nokia in talks to buy Alcatel-Lucent; France backs deal
By Jussi Rosendahl and Leila Abboud HELSINKI/PARIS (Reuters) – Nokia Oyj is in talks to buy smaller telecom equipment maker Alcatel-Lucent , a deal combining the industry's two weakest players that is backed by the French government but could pose challenges in cutting costs. In a joint announcement, the Finnish and French companies said they were in “advanced discussions” on a “full combination, which would take the form of a public exchange offer by Nokia for Alcatel-Lucent”. Shares in Alcatel, a group worth about 11 billion euros based on Monday's closing share price, rose about 16 percent. Shares in Nokia, worth about 29 billion euros, fell as much as 7 percent in morning trade before paring back losses to end down 3.6 percent.