Nokia plays down shareholder opposition to Alcatel-Lucent deal

Written by on April 30, 2015 in News with 0 Comments
Nokia's Chief Executive Rajeev Suri. REUTERS/Lehtikuva/Markku Ulander

Nokia’s Chief Executive Rajeev Suri. REUTERS/Lehtikuva/Markku Ulander

HELSINKI (Reuters) – Nokia Chief Executive Rajeev Suri defended the terms of its pending acquisition of smaller telecom gear maker Alcatel-Lucent after a shareholder criticised them as unacceptable.

Odey Asset Management, Alcatel-Lucent’s second-largest shareholder with 5 percent, said in a letter to investors that it would not tender its shares in the Nokia takeover because the 15.6 billion euro (11 billion pound) price in the all-share deal was too low, according to the Financial Times newspaper.

“We’ve met many investors in the last couple weeks, and there’s very strong, good feedback,” Suri said on a call after first-quarter results.

He declined to say whether the terms of the deal would be altered, adding only that both boards had already approved them.

“Fundamentally this is a good deal with attractive upside in long-term and upfront.”

Alcatel-Lucent shareholders do not need to vote to ratify the deal since it will go through as long as 51 percent of shares are tendered.

(Reporting by Jussi Rosendahl; Editing by Leila Abboud)

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