- Nokia (NOK -4.1%) and merger partner Alcatel-Lucent (ALU -3.7%) aren't being spared as European equities post steep declines amid expectations Greece will soon default. France's CAC-40 has fallen 3.6%, Germany's DAX 3.4%, and the Euro Stoxx 50 4.2%. With Switzerland's help, the euro is nearly flat.
- It was only a week ago that Nokia and Alcatel joined a European rally fueled by hopes of a pending Greek deal.
- Separately, activist Elliott Management has disclosed a 1.3% Alcatel-Lucent stake obtained via equity swaps, a move that could be a precursor to a call for Nokia to up its buyout offer price. #2 Alcatel shareholder Odey Asset Management has already called deal terms "unacceptable."
- An FT source states Alcatel hasn't yet heard from Elliott. The paper notes a deal could be tough to derail, given only 50% of Alcatel shares need to be tendered and only Nokia shareholders get to vote on the transaction.