Alcatel-Lucent CEO Says Rebuffed Nokia’s Interest in Mobile-Only Deal
Alcatel-Lucent Chief Executive Michel Combes said Nokia’s was initially interested in buying only the French group’s mobile business, but he rejected that as not assuring the long-term viability of the group.
Instead Combes pushed Nokia to make a bid for the entirety of Alcatel-Lucent and obtained an all-share takeover unveiled on Wednesday.
“Nokia approached us about mobile and I judged that this was not the best solution for the group and its future,” he said.
“With the advent of 5G in the next decade, telecom vendors need to be present in all parts of the mobile business: the base station, backhaul and Internet routers,” he explained.
Alcatel would have been too small, specialised, and vulnerable if it had sold off the wireless business, which accounted for almost a third of sales last year.
Combes also told Reuters in an interview that he would not serve as the vice-chairman of Nokia after the Alcatel-Lucent sale was completed. That seat has been set aside for a representative of the French group.
Alcatel-Lucent’s undersea cable business, which builds and installs such key infrastructure underpinning the global Internet, will not be sold to Nokia, the CEO said.
Instead it will be spun off either as a private company or floated in an initial public offering.
© Thomson Reuters 2015
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Tags: Alcatel Lucent, Nokia, Telecom
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