Tech

Nokia shares dive on potential Alcatel-Lucent compliance issues

Key Points
  • Finnish network equipment maker Nokia said on Friday it was looking into transactions at its former French rival Alcatel-Lucent which it acquired in 2016, after reporting possible compliance issues at the unit to U.S. authorities.
  • Shares were down 5.12 percent by 12:12 p.m. EST
Rajeev Suri, chief executive officer of Nokia Oyj, stands beside a giant screen displaying the Alcatel-Lucent SA logo while speaking to shareholders at the company's annual general meeting (AGM) in Helsinki, Finland, on Tuesday, May 5, 2015.
Tomi Setala | Bloomberg | Getty Images

Finnish network equipment maker Nokia said on Friday it was looking into transactions at its former French rival Alcatel-Lucent which it acquired in 2016, after reporting possible compliance issues at the unit to U.S. authorities.

Shares were down 5.12 percent by 12:12 p.m. EST, on track for worst day since October 2017 and bottom of the pan-European STOXX 600 index.

"The last night comment on possible fines stemming from business transactions of Alcatel-Lucent is hurting the stock, the market is really sensitive about Nokia these days," said Kimmo Stenvall, analyst at OP Markets.

Nokia said certain practices relating to compliance issues at the former Alcatel-Lucent business had raised its concerns during the integration process.

"To ensure complete compliance we are now scrutinizing certain transactions in the former Alcatel-Lucent business and although this investigation is in a relatively early stage, out of an abundance of caution and in the spirit of transparency, Nokia has contacted the relevant regulatory authorities regarding this review," Nokia said in an emailed statement to Reuters.

Nokia said it had voluntarily reported the matter to the relevant regulators, and it was cooperating with the authorities to resolve the matter.

"The resolution of this matter could 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 to the U.S. Securities and Exchange Commission.

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Tiffany shares bounce back as CEO touts growth opportunities

Key Points
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  • The luxury jewelry retailer has struggled as spending by Chinese tourists has softened, amid ongoing trade talks between the U.S. and China.
  • Tiffany shares initially fell on the news but turned around by mid-morning.