back to article Nokia: Yes, we're chatting up Alcatel-Lucent

Nokia has confirmed it is in talks to snap up Alcatel-Lucent. In a statement the former phone maker said it is in "advanced discussions with respect to a potential full combination, which would take the form of a public exchange offer by Nokia for Alcatel-Lucent." Nokia said there can be no certainty at this stage that these …

  1. John Styles

    How about Alacatel-NokiA-Lucent - or ANAL for short - for the name?

    1. xerocred

      anal.com

      You could be onto something, the domain anal.com is for sale.

      1. Anonymous Coward
        Anonymous Coward

        Re: anal.com

        and you were looking for this because ........

    2. Anonymous Coward
      Anonymous Coward

      "Alca-Lu made posted sales of €13.2bn (£9.5bn) for its full-year 2014. Nokia’s full year 2014 net sales of €12.7bn (£9.2bn).

      However, Alca-Lu recorded a net loss of €83m (£60m). Nokia’s operating profit was €170m (£123m) in 2014."

      Rather more importantly, Nokia has a much larger market capitalisation...

    3. JetSetJim Silver badge

      Much as it would be funny to come up with ANAL as the acronym for the "new" company. it will be "Nokia", it's a buy out proposal, not a merger. Just like what happened when they bought Motorola Networks ( when they were Nokia-Siemens Networks), there was no change in the name. There was even a person that asked about that in the townhall meeting when they told us about changes to expect, to a few titters.

      The typical behaviour is to try and EOL the subservient company's (ALU) kit and port it (or the RAN side of it) onto the parent company kit - i.e. connect all the ALU base stations to NOK RNCs (for 3G) and MME/SGWs for 4G, then throw away the ALU RNCs & MME/SGWs and other ancillary equipment like the OSS. I can well imagine that there is a project underway in the background investigating how this can be achieved with the minimum of fuss & outage.

      This deal is all about the contracts that ALU have in place - ALU get the bulk of their sales from AT&T and other N. America operators, which is a nice high margin market. But I have to wonder what will happen to those contracts now that it will be NOK rather than ALU proposing the deal. It will boil down to how happy customers are to swap out ALU kit in favour of NOK kit, as well as no longer being able to buy additional ALU kit (I'm not offering any judgement on the comparative worth of each), plus whether NOK can fulfil any roadmap promises that ALU may have made in getting their contracts. I'd expect the ALU side of the sales will take a hit as a consequence of the deal, though.

      As an added quirk to the deal, ALU have done lots of restructuring which meant the closure of several sites (including UK ones). Lots of job functions moved to Paris, and French jobs are very hard to cull - I'd expect a few strikes, soon, when NOK start making noises about "cost synergies and optimisation". Expect mass cull excepting a few senior network design/architects, who will be supported by a hastily trained outsourced team in India/Vietnam/China to do bug fixes on the s/w (my guess would be Aricent in India, if their price is right).

  2. Anonymous Coward
    Anonymous Coward

    Most interesting, that would mean Nokia are back in the handset business but this time with Android.

    1. Anonymous Coward
      Anonymous Coward

      No, they won't. The handset division of Alcatel has been sold of long time ago to TCL, but TCL are still allowed to use the brandname Alcatel on the phones (and presumably pay for it).

      1. Anonymous Coward
        Anonymous Coward

        @ AC thank you for the enlightenment - didn't know that.

    2. Anonymous Coward
      Anonymous Coward

      Absolutely not. Alcatel-Lucent doesn't produce any mobile telephone. That is done by Alcatel Mobile Phones, a joint venture with TCL (a Chinese company). Alcatel sold its shares to TCL a long time ago.

  3. Gordon 10 Silver badge
    Flame

    Have Alcatel ever made a profit?

    They've been doing restructures ever since they swallowed lucent which is 15 odd years ago.

    Talk about Nokia jumping out of the frying pan....

    1. Hero Protagonist

      Re: Have Alcatel ever made a profit?

      9 years actually (2006), but your point still holds.

    2. Anonymous Coward
      Anonymous Coward

      Re: Have Alcatel ever made a profit?

      The merger is from 2006, so not even 10 years ago... But otherwise entirely true.

  4. Anonymous Coward
    Anonymous Coward

    How times have changed - sadly

    Years ago, the picture in the article of the boy kissing the girl would be considered cute. Today it could be considered sexual assault.

  5. Andus McCoatover

    Oh, that magic word again....

    Synergy.

    Euphemism for "redundancies".

    Wonder who Nokia will outsource its redundancies to this time round?

    Don't think Alcatel-Lucent is big in India*, so might cost them a packet this time.

    Oh, and the French...About as heavy with unemployment as the Germans. Wondered if Nokia factored that in.

    *Of course, Rajeev Suri may have inside knowledge...

  6. Anonymous Coward
    Anonymous Coward

    Too difficult for them to cut jobs in France?

    Not a problem for Nokia.

    I was there for five years and saw how easily Nokia France axed people.

    They also axed jobs at NSN Germany against the grain of the German's huffing and puffing about national champions (whilst the rest of us asked, "How many thousands in Munich? What are they all doing? No wonder we aren't profitable.")

    (plus all the experience gained of axing people under Stephen Elop)

    It is nasty, especially for the individual but they do get the business back to profit.

    (AC for my own safety... ;0)

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