Nokia confirmed on Tuesday that it is in “advanced discussions” to acquire rival network equipment maker Alcatel-Lucent.
The move follows a Bloomberg News report of the talks.
“In relation to recent media speculation, Nokia and Alcatel-Lucent confirm that they are in advanced discussions with respect to a potential full combination, which would take the form of a public exchange offer by Nokia for Alcatel-Lucent,” Nokia said in a press release posted to its website. “There can be no certainty at this stage that these discussions will result in any agreement or transaction. A further announcement will be made when appropriate.”
With the sale of its handset business to Microsoft, Nokia has three remaining businesses: Its network gear unit, its Here maps unit and an advanced technology business, with the last of those also owning Nokia’s substantial patent holdings. The company has reportedly been seeking bids for the maps unit.
Nokia shares slumped on the news, trading down more than 6 percent, to 7.28 euros, while Alcatel-Lucent shares rose more than 12 percent.
This article originally appeared on Recode.net.