Wed, Apr. 15, 1:44 AM
- Nokia (NYSE:NOK) has agreed to acquire telecoms equipment company Alcatel-Lucent (NYSE:ALU) for €15.6B ($16.6B), in a deal that would solidify its ambitions to become a major provider of networking equipment.
- The merger will take the form of a public exchange offer in France and the U.S., under which Nokia will give Alcatel-Lucent shareholders 0.55 shares in the combined company for each of their old shares.
- The deal is expected to close in the first half of 2016.
- Previously: Nokia confirms 'advanced' merger discussions with Alcatel-Lucent (Apr. 14 2015)
- ALU +1% AH
Tue, Apr. 14, 4:22 AM
- Following rumors of a tie-up, Nokia (NYSE:NOK) has confirmed it is in advanced talks to buy Alcatel-Lucent (NYSE:ALU), although it wasn't clear if the parties agreed on a valuation.
- In a joint statement, the companies said a potential merger would take the form of a public exchange offer by Nokia for the French company.
- Alcatel-Lucent's market capitalization currently stands at approximately €11B, while Nokia's is about €28B.
- NOK -8.3%; ALU +2.1% premarket
- Previously: More on NOK/ALU: Wireless asset deal reportedly close (Apr. 13 2015)
- Previously: Alcatel-Lucent +10.5%; Nokia reportedly in talks to buy assets (Apr. 13 2015)
Mon, Apr. 13, 5:39 PM
Mon, Apr. 13, 4:10 PM
- Sources tell Bloomberg Nokia (NYSE:NOK) might announce a deal to buy Alcatel-Lucent's (NYSE:ALU) wireless infrastructure hardware assets "as early as this week." Though a full-blown buyout of Alcatel has also reportedly been examined, a wireless deal "remains the most likely scenario."
- Nokia execs are reportedly working to win the French government's support. French government reps are said to be working on a compromise that would protect some domestic R&D jobs.
- Acquiring Alcatel's wireless unit (2014 sales of $5B) would yield cost synergies and increase Nokia's mobile infrastructure scale as it battles against market leader Ericsson (ERIC) and China's Huawei and ZTE. It would particularly strengthen Nokia's position in North America (Lucent's stronghold prior to the merger) and China. At the same time, the post-merger entity could lose share with carriers already relying on both Alcatel and Nokia, and wanting to maintain their current level of supplier diversity.
- For Alcatel, a sale would further lower the company's net debt load (a recent priority) and shed a business that has underperformed relative to Alcatel's IP routing unit.
- Alcatel closed up 7.9%. Nokia closed up 3%.
- Earlier: Nokia reportedly in talks to buy Alcatel-Lucent assets
Mon, Apr. 13, 2:52 PM
- Bloomberg reports Nokia (NOK +2.9%) is in advanced talks to buy certain assets from Alcatel-Lucent (NYSE:ALU). Alcatel has soared in response; Nokia has also moved higher.
- Alcatel rallied on Friday after a Bloomberg report stating Nokia is exploring a sale of its HERE mapping unit fueled speculation the company would bid for all or part of Alcatel (as has been rumored before).
Fri, Apr. 10, 12:21 PM
- Alcatel-Lucent (NYSE:ALU) has jumped following a Bloomberg report stating Nokia (NYSE:NOK) is exploring a sale of its HERE mapping/navigation software unit - a move that would both leave Nokia solely focused on telecom equipment and IP licensing, and provide it with more funds for M&A.
- A German magazine reported last December ALU and Nokia had revived M&A talks in the fall, and Reuters reported in 2013 Nokia was "discussing internally" whether it should bid pursue a deal with ALU.
- Deal proponents have argued a Nokia/Alcatel-Lucent merger would both yield major cost synergies and significantly expand Nokia's wireline equipment lineup, thus leaving it better-positioned to compete for major deals against the likes of Ericsson, Huawei, and Cisco.
Fri, Apr. 10, 10:53 AM
- Less than two years after striking a deal to sell its phone unit to Microsoft, Nokia (NOK) is exploring the sale of its HERE mapping/navigation unit, Bloomberg reports.
- HERE, previously valued by Nokia at €2B ($2.12B), is reportedly "attracting interest from companies and private-equity firms," as CEO Rajeev Suri tries to slash Nokia's debt load. Bloomberg cautions Nokia might opt against a sale if it can't get a sufficient bid; bids are expected soon.
- HERE had 2014 revenue of €969M ($1.03B, +6% Y/Y), and an op. profit of €31M ($33M, -35% Y/Y); top-line growth is expected in 2015. The business has had a tough time competing against Google in the online/mobile mapping space, but has fared better in the automotive market. Google's Android Auto and Apple's CarPlay platforms have begun providing fresh auto market competition.
- The unit saw a leadership change last year that reportedly stemmed from a disagreement with Suri over whether HERE should continue going after consumers or focus on auto/enterprise opportunities.
- Nokia has spiked higher following Bloomberg's report.
- Update (12:42PM): Bloomberg now adds Nokia has reached out to ride-sharing giant Uber, and that "a group of German carmakers has also shown interest."
Fri, Mar. 27, 12:44 PM
- Nokia (NOK +0.8%) will manage Vodafone's Vodafone Hutchison Australia's 2G,3G, and 4G network operations for another 4 years. The Sydney Morning Herald reports the deal is worth around $200M.
- Notably, Nokia will handle the work from an Indian Global Delivery Center. The company's global services revenue totaled €1.58B (+3% Y/Y) in Q4, and €5.11B (-11% Y/Y) over the whole of 2014.
- Separately, Nokia has its 2014 annual report (form 20-F). It can be downloaded on Nokia's site.
Tue, Mar. 10, 1:13 AM
- Nokia's (NYSE:NOK) current forecast for licensing revenue (exc. the outcome of a 2015 Samsung arbitration ruling) to simply grow from a €600M/year run rate "understates the long-term potential for this business unit now that Nokia no longer will cross license its own mobile device business," says Canaccord Mike Walkley, reiterating a Buy and $12 target.
- Walkley, who met with Nokia Technologies (licensing division) chief Ramzi Haidamus at last week's Mobile World Congress, also argues Nokia's core Networks business is "well-positioned to maintain strong margins and drive solid cash flows," and that the Here mapping/navigation unit can (like licensing) also boost margins and top-line growth.
- Nokia is coming off a Q4 in which Technologies revenue rose 23% Y/Y to €149M thanks to rising Microsoft royalties, and Here revenue rose 15% to €292M to automotive growth. North American demand drove an 8% increase in Networks revenue.
- JPMorgan has also been upbeat about Nokia's licensing potential in the wake of the Microsoft deal.
Tue, Mar. 3, 7:06 PM
- With Mobile World Congress focusing lots of talk on the next generation of wireless radio technology -- 5G -- NTT DoCoMo (NYSE:DCM) is putting itself in the center, working with many firms in the space, in Asia and otherwise, to help define the standards and develop the tech.
- Recently the Japanese company announced a regional consortium with South Korea's KT Corp. (NYSE:KT) and China Mobile (NYSE:CHL). The three will share information to develop custom 5G tech for Asia, in a bid to get ahead of competitors in the U.S. and Europe.
- Today China's Huawei said it was teaming with DoCoMo for tests in both China and Japan. At MWC, Huawei announced plans to invest at least $600M on 5G research over the next three years.
- On Monday, Nokia (NYSE:NOK) said it was working with DoCoMo to develop high-frequency networks for 5G that could offer 2 Gbps speeds by tapping previously unused spectrum.
- DoCoMo is among the more conservative firms on 5G, expecting it to really arrive in 2020 (just in time for the Tokyo Olympics), with 2030 a target for major deployment.
- FCC Chairman Tom Wheeler says of 5G: "It is like going to the Picasso museum here in Barcelona and looking at a picture; I’ll see something different than you see," but agreement is crystallizing around goals: speeds of up to 10 Gbps, vs. 4G's theoretical 300 Mbps; latency of 1 ms, 500 times faster than current; green and sustainable; flexible; and secure.
Mon, Mar. 2, 11:19 AM
- Up sharply last week following a Bloomberg report stating HP is in talks to buy Aruba Networks, Ruckus (RKUS -4%) has sold off after HP and Aruba officially announced the deal this morning.
- HP's purchase price ($3B, or $24.67/share) is slightly below Aruba's Friday close, albeit well above where Aruba traded before Bloomberg's report came out.
- Meanwhile, Ruckus has used the Mobile World Congress to announce its 802.11ac carrier Wi-Fi tech is being integrated into partner Nokia's (NYSE:NOK) small cell 3G/4G base stations. Nokia will begin offering the solution later in 1H15. It comes as Qualcomm rolls out chips supporting the use of unlicensed 5GHz. spectrum (used for Wi-Fi) to offer 4G services via small cells.
Thu, Jan. 29, 3:32 AM
- "While 2014 was a year of reinvention, we see 2015 as a year of execution," announced Nokia's (NYSE:NOK) chief executive Rajeev Suri, saying the company was ready to take more steps to grow this year.
- Net profit in the three months to end-December quarter was €443M ($505M), or €0.11 a share, beating a median analyst forecast of €325M, or €0.09 a share.
- The stronger-than-expected quarterly profits was lifted by robust sales of latest-generation wireless telecom equipment in North America.
- Update: Nokia forecasts weakening profitability in 2015, saying adjusted operating margin at its network division will probably shrink this year.
- NOK -2.8% premarket
Wed, Jan. 28, 5:30 PM
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Wed, Jan. 14, 9:28 AM
- JPMorgan Cazenove (JPM's European bank) has hiked its Nokia (NYSE:NOK) target by €1 to €9 ($10.62), and predicted the company will benefit from a weak euro and a favorable royalty arbitration ruling against Samsung.
- The firm also thinks Nokia will beat Q4 EPS estimates when it reports on Jan. 29, thanks to better-than-expected margins, and sees the company renegotiating licensing deals to direct licensing agreements (could provide a 1% royalty) from fixed-price ones.
- BofA/Merrill named Nokia a top telecom equipment pick on Monday: It cited Samsung arbitration, improving Chinese patent monetization, U.S./European equipment share gains, and the ability to participate in industry consolidation; Alcatel-Lucent rumors have been swirling for a long time.
Tue, Jan. 13, 5:42 PM
Mon, Jan. 5, 9:57 AM
- With Greece and oil-related fears once more taking a toll, The Euro Stoxx 50 is down 2.1%, and many continental indices posting ~2% declines. U.S.-traded European tech and telecom names are performing much the same way.
- Tech decliners: NOK -4.2%. ALU -3.3%. SAP -2.9%. STM -2%.
- Telecom decliners: VOD -2.4%. TEF -4%. ORAN -3.6%. TI -2.2%. PT -6%.
NOK vs. ETF Alternatives
Nokia Oyj is a mobile communications company. The Company has three business: Networks, HERE, and Technologies and four business segments: mobile Broadband and Global Services within Networks, HERE, and Technologies.
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