DHAKA: Nokia is in talks to buy Alcatel-Lucent, a deal that could create a European telecoms equipment group worth over 40 billion euros, and cut costs at two of the industry’s weaker players.

In a joint announcement, the Finnish and French companies said there could be ‘no certainty at this stage that these discussions will result in any agreement or transaction’.

Analysts and investors also 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.

Nevertheless shares in Alcatel, a group worth about 11 billion euros based on Monday’s closing share price, rose 14 percent on Tuesday morning.

Shares in Nokia, worth about 29 billion euros before Tuesday’s announcement, dropped 6 percent, reports The Straits Times.

BDST: 1540 HRS, APR 14, 2015
RR