Actionable news
All posts from Actionable news
Actionable news in NOK: NOKIA CORPORATION,

Why Nokia and Alcatel-Lucent Could Be Dead Money Until 2016

The Alcatel-Lucent S.A. (NYSE: ALU) and Nokia Corp. (NYSE: NOK) merger is practically regarded as a done deal. However, one key analyst doesn’t see this combined company going anywhere in the near future, based on the current valuation and plans going forward. In fact, Argus maintained its Hold rating for Nokia, but what matters here is why the firm thinks this combined company will be dead money for the time being.

In its third quarter, Nokia posted a 2% decline in revenue. Also sales were down 10% in constant currency and adjusted for M&A. Revenue in constant currency was negatively impacted by weakness in North America and Europe, while demand from China was notably strong.

However, investors barely made note of the third-quarter results, considering the growing focus on the pending acquisition of Alcatel-Lucent. That deal has won regulatory clearance and is on track to be completed in the first quarter of 2016...