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Nokia in talks to buy Alcatel-Lucent; France wary about jobs

By Jussi Rosendahl and Leila Abboud HELSINKI/PARIS (Reuters) – Nokia Oyj is in talks to buy smaller telecom equipment maker Alcatel-Lucent , a deal that would combine the industry's two weakest players but could pose challenges in cutting costs and overcoming political opposition. In a joint announcement, the Finnish and French companies said they were in “advanced discussions” on a “full combination, which would take the form of a public exchange offer by Nokia for Alcatel-Lucent.” The two, which have been seen as a possible combination for the last several years, cautioned that the discussions could still fall apart. Shares in Alcatel, a group worth about 11 billion euros based on Monday's closing share price, rose 12.6 percent on Tuesday morning. Shares in Nokia, worth about 29 billion euros, dropped 6.6 percent.