The stock ticker on the NYSE would be (FU) while on NASDAQ it would be (FUBR).
Over the past several days, there have been articles from various news outlets citing people familiar with the situation that the two companies have been in talks as about potential business synergies.
History tells us that multinational companies with distinct cultural differences can not work with each other. The American-French disaster that created Alcatel-Lucent is one example and the Finnish-German disaster that created Nokia Siemens Networks is the other.
One has to also consider who is still left at Alcatel-Lucent that didn’t ALREADY LEAVE during the past 12-18 months as the company was hemmorhaging financially, either willinginly or unwillingly.
Second, the wireless product portfolios of the two companies are completely different so does the new company discontinue the weaker product line (ALU) in favor of the stronger product line (NSN). light Radio does not fit with Liquid Radio.
Third, the cultural issues remain. Do the Finns fire and replace the Americans/French that remain at ALU?
Fourth, NSN just emerged from finally getting its house in order. Are the BoD members at NSN as stupid as the BoD members at NOK to not understand the massive risks a second merger would create?
Fifth, yes NSN desperately needs to increase share in the United States and this is the only way it can do it as organically, it has failed.
Sixth, yes it would allow a larger share of the China Mobile contract for TD-LTE with a combined share of ~15-17%.
Seventh, it would take 2-3 years to consolidate and merge the supply chain of the two companies as ALU has traditionally outsourced its RF designs.
Do these talks spur Samsung Electronics to either make a bid to bump up the price for NSN or actually consider it as a strategic move to block NSN and grow its footprint which organically, has been very very slow.
Bottom line is investors may be potentially happy because they are stupid. They do not have any idea on the non-synergies of the two companies. Any stock analyst out there with at least 2 neurons firing in their brain should be able to see this. If they don’t, then shame on them.