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Nokia shares diver on possible Alcatel-Lucent compliance issues



  Rajeev Suri, CEO of Nokia Oyj, is standing next to a huge screen showing the Alcatel-Lucent SA logo while speaking to shareholders at the company's annual general meeting in Helsinki, Finland, Tuesday, May 5, 2015.

Tomi Setala Bloomberg | Getty Images

Rajeev Suri, CEO of Nokia Oyj, is standing next to a huge screen showing the Alcatel-Lucent SA logo, while on Tuesday, May 5, speaking to shareholders at the company's annual general meeting in Helsinki, Finland , 2015.

Finnish network maker maker Nokia said on Friday that it investigated transactions with its former French competitor Alcatel-Lucent, which it acquired in 2016 after reporting possible compliance issues with the unit to the US authorities.

Shares fell 5.12 percent at 12:12 pm EST, heading for the worst day since October 2017 and bottom of pan-European STOXX 600 index.

"The last night's comment on possible fines due to Alcatel-Lucent's business transactions hurts the stock, the market is very sensitive about Nokia these days," says Kimmo Stenvall, analyst at OP Markets.

Nokia said that some practices regarding compliance with the previous Alcatel-Lucent business had raised concerns during the integration process.

"To ensure complete compliance We are now investigating certain transactions in the former Alcatel-Lucent company and although this study is at a relatively early stage, Nokia has contacted the relevant regulatory authorities for this review of a major caution and with transparency. "Nokia said in an email statement to Reuters.

Nokia said it had voluntarily filed the case with the relevant supervisory authorities and cooperated with the authorities to resolve the case.

"The decision of this case may result in potential criminal or civil penalties, including the possibility of monetary fines, which could have a material adverse effect on our business, brand, reputation or financial position," it said in a filing for US Securities and Exchange Commission.


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