By Telecompaper
Nokia and Alcatel-Lucent confirmed they are in advanced talks on a potential merger. The offer would take the form of a public bid by Nokia for Alcatel-Lucent. Further details of the negotiations were not disclosed.
Speculation of such a merger resurfaced following reports that Nokia has put its mapping and navigation division Here up for sale. This would leave the company solely focused on network equipment. Bloomberg reported earlier citing people familiar with the matter that Nokia was in advanced negotiations to acquire Alcatel-Lucent's wireless division. While a full takeover of Alcatel has also been examined, a purchase of the wireless unit remains the most likely scenario, the report said.
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Alcatel-Lucent's continued presence in the submarine cable, public safety and government markets means the merger could faced increased regulatory scrutiny due to security concerns, particularly in the US and France. The French government is also likely to seek assurances that the overlap between the two companies does not lead to significant job losses in France.
