Alcatel-Lucent and Nokia are considering a merger

Finland’s Nokia confirmed Tuesday that it is in “advanced” merger discussions with telecoms company Alcatel-Lucent, following rumors of a tie-up. Nokia shares fell up to 6 percent following the news, while Alcatel-Lucent traded up to 13 percent higher. In a joint statement, the companies said a potential merger would take the form of a public exchange offer by Nokia for the French company. Urging caution, the statement added: “There could be no certainty at this point that these discussions will result in any agreement or transaction.” It is unclear whether Nokia, which is a backbone of the Finnish economy, would acquire all of Alcatel-Lucent’s assets, or just its wireless business. Analysts at Credit Suisse and Citi concurred that purchasing Alcatel-Lucent’s (ASU) wireless unit would be a wise strategic move for Nokia (NSN), because of the former’s presence in the U.S.