Nokia: Combining with ALU carries risks; reiterating Hold
Argus the combination of ALU/NOK as two low-margin, slowgrowing businesses would not necessarily unlock value. Acquiring all of ALU would mark a step backward for co. In addition to exiting the handset business (which was sold to Microsoft (MSFT)), co has divested most of its wireline business, including the sale of its broadband access business to HOLD-rated Adtran Inc. Should co acquire all of ALU, it would be back in the access business and the optical networks business.