Alcatel-Lucent bonds jump on Nokia merger talk

By Mariana Santibanez NEW YORK (IFR) - High-yield dollar bonds of French telecom equipment maker Alcatel-Lucent rallied sharply Tuesday on prospects of a potential merger with Finnish mobile phone company Nokia. Alcatel-Lucent, rated B by S&P and B3 by Moody's, saw its 6.45% 2029 bonds jump 7.5 points to 111 from 103.5 late on Monday, a trader said. The companies said in a joint statement today they were in talks for a "full combination, which would take the form of a public exchange offer by Nokia for Alcatel-Lucent". Talk of a tie-up has circulated for several years, though in today's statement they cautioned that the discussions could still fall apart. Reuters reported that French Economy Minister Emmanuel Macron had given his backing to Nokia's plan to buy the French company, saying it offered a chance to reconquer lost markets and create a European leader in telecoms equipment. (Reporting by Mariana Santibanez; Editing by Natalie Harrison and Marc Carnegie)