FrankenNokia
Monday Note
Apr 19, 2015
Stitching together the disparate body parts - and cultures - that make up Nokia-Alcatel-Lucent is not a task for the faint of heart. This week we look at what Rajeev Suri, the CEO of the combined companies, is up against.
April 15th 2015: Nokia "agrees" to the $16.6B takeover of Alcatel-Lucent. On the surface, the acqui-merger makes sense. Both companies make networking gear and they're of similar size, each with
2014 revenues of about $16B. (Nokia's latest financials; Alcatel-Lucent's 2014 annual report.)
It's a financially complex transaction involving two complicated and venerable companies. Debt is assumed, debt is exchanged for shares, new debt is issued - there are a lot of ifs and buts.
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