Source: The New York Times
SPOO, Finland — Tucked away down a corridor at Nokia’s headquarters here is a reminder of its 150-year history. A colorful display traces its transformation from a maker of rubber boots in the 19th century to the world’s largest manufacturer of cellphones, whose market capitalization once peaked at almost $250 billion.
Those high-flying days, though, are long gone.
Nokia failed to adapt to the fast rise of smartphones and eventually sold its faltering handset business to Microsoft. Now, in an effort to remake itself once again, Nokia has turned to manufacturing the telecom equipment that powers the mobile networks of global carriers like Deutsche Telekom and China Mobile.
That strategy will soon face its biggest test when Nokia completes its $16.6 billion takeover of its Franco-American rival Alcatel-Lucent in early 2016.
Nokia shareholders will meet in Helsinki, Finland, on Wednesday to approve the deal. And despite some resistance, Alcatel-Lucent’s shareholders are also expected to give their support by the end of the year through a share-swap arrangement that will leave them with roughly a one-third stake in the enlarged telecom manufacturer. (Nokia shareholders will hold the remainder.) Read the rest of this entry »