Ion-Marc Valahu est interviewé par The Guardian – 14.04.2015
Clairinvest fund manager Ion-Marc Valahu also expressed scepticism over the merits of the proposed deal: “They are two of the weaker players in the industry. They could come up with some cost cuts, but just because you combine one weak player with another weak player does not necessarily mean that you will end up with a stronger player.”
Nokia has confirmed that it is in advanced talks to buy French smartphone and wireless equipment manufacturer Alcatel-Lucent.
The Finnish firm confirmed speculation from French financial newspaper Les Echos, which could see Nokia bolster its networking business against Swedish rival Ericsson as well as give it a possible re-entry into the smartphone market.
“Nokia and Alcatel-Lucent confirm that they are in advanced discussions with respect to a potential full merger, which would take the form of a public exchange offer by Nokia for Alcatel-Lucent,” said a statement. “There can be no certainty at this stage that these discussions will result in any agreement or transaction.”
Paris-based Alcatel-Lucent is a leading supplier of 4G and LTE mobile networks and related services, best known in the UK for its modems and routers and cheap mobile phones.
In a joint venture with Chinese manufacturer TCL Communications, the company also manufactured a range of Android and Windows Phone smartphones predicated on low-cost but feature-rich devices, as well as wearable devices and smartphone accessories. Alcatel-Lucent later sold its shares in Alcatel Mobile Phones to TCL.
It is possible an acquisition of Alcatel-Lucent could provide both firms with a ground to re-enter the smartphone market.
Alcatel-Lucent has offices and research and development centres, which could aid Nokia’s transition back into a mobile company after having sold its struggling smartphone business to Microsoft for £4.6bn in September 2013. Since completing the sale last year Nokia has sat on most of the £4.6bn it made from the sale.
Nokia rising from the ashes
The Finnish company was the world’s biggest mobile phone maker for more than a decade until it was overtaken by South Korea’s Samsung in 2012.
Nokia launched a thin and powerful Android tablet in China last year, made by Apple product manufacturer Foxconn, and is rumoured to be working on at least one Android smartphone. But under the terms of the deal with Microsoft, Nokia is restricted from using the Nokia brand name on smartphones until the last quarter of 2016 and on feature phones for 10 years.
Analysts and investors flagged potential opposition from the French government, which has said in the past it sees the communications industry as strategic, and is sensitive about the job cuts that often go with cost-saving takeover deals. The French economy ministry had no immediate comment.
Clairinvest fund manager Ion-Marc Valahu also expressed scepticism over the merits of the proposed deal: “They are two of the weaker players in the industry. They could come up with some cost cuts, but just because you combine one weak player with another weak player does not necessarily mean that you will end up with a stronger player.”
The purchase would represent a significant boost in market share for Nokia, however, creating a European telecoms company worth over £28bn. Alcatel-Lucent share price rose 14% while Nokia’s fell 6.6% on the news this morning.