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Tuesday, 04/21/2015 11:06:02 AM

Tuesday, April 21, 2015 11:06:02 AM

Post# of 4345
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This is exactly how this was printed on Yahoo.

#1
As structured, for the merger to make sense, Nokia will need to capitalize on Alcatel's assets to build a vertically integrated business that can offer clients everything from infrastructure-related hardware to installation and ongoing servicing and management capabilities. If clients really want a turnkey operation, then Nokia's strategy could end up working well. But Nokia will also have a financial-management challenge on its hands, as the combination of two companies with junk bond ratings will make it essential for the company to figure out how to access credit markets efficiently with a minimum of interest expense.

In the end, Alcatel-Lucent fell on the merger because it failed to offer the perfect exit for long-term investors who've shared the company's struggles during the years. With ongoing exposure to Nokia after a merger and the potential for failure, Alcatel shareholders will have a tough decision to make: whether to hold on to their Nokia stock, or cash in their chips in favor of other players in the tech industry.

#2
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Read more: http://www.investopedia.com/stock-analysis/042015/why-alcatellucent-investors-hate-nokia-deal-alu-nok.aspx#ixzz3XxMKbuNX
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