Ericsson (ERIC) and Alcatel-Lucent (ALU) jump sharply following news that Nokia (NOK) is selling its handset unit to Microsoft, leaving the Finnish company to focus on its telecom-equipment division NSN, among other things. Could industry consolidation be on the cards?
As SA auther Jacob Steinberg notes, the deal will leave Nokia with a cash mountain of almost $20B. That would theoretically be more than enough to buy Alcatel-Lucent, whose market cap is just $5.86B.
Ericsson is +3.9% in Stockholm and ALU is +11.2% premarket in the U.S.