Dallas, Texas 10/22/2013 (Financialstrend) – News items have been doing the rounds that Nokia Corporation (ADR) (NYSE:NOK), post its do or die deal with Microsoft is looking around for suitable acquisitions to strengthen is network and telecommunications infrastructure business. The deal with Microsoft few months back will net the embattled hand set maker close to $7.4 billion on completion of the deal.
On October 21 these rumours gained even more weight when news rooms started to reporting that Nokia is all set to ink a $2.7 billion dollar takeover of Alcatel-Lucent operations including its wireless network equipment properties.
In total the Norwegian multinational will boast of close to Euros 14 billion once it receives the reminder of the cash from Microsoft. With this cash chest the company will be well placed to scout for and acquire either ailing Alcatel-Lucent combination or any other company which will add value to its existing network infrastructure practice.
What makes the French based “Alcatel-Lucent” operations an attractive asset to acquire for Nokia is the strong Intellectual property and the trained workforces who were previously known for their cutting edge product offerings designed to propel the entire cellular industry further.
Analysts give a thumps up for the deal that seems to be in the works between Nokia and Alcatel Lucent. Commenting about the purported deal, Sami Sarkamies who is a Helsinki based business analysts “This deal makes complete sense, Nokia will have the financial flexibility to do this kind of deal and Alcatel needs to slim down. There is a relatively high likelihood of this deal happening”.
In the event of a coming together of these two companies, Nokia would be well placed to take on the market leader Ericsson in the mobile network infrastructure space. It will also gain a strong foot hold in the U.S market which no tech company can ignore.