Nokia shares slide after it reports possible Alcatel-Lucent compliance issues
Shares in telecoms giant Nokia dropped as much as eight per cent today after it reported concerns over potential compliance issues at its Alcatel-Lucent division.
In an annual filing to the Securities and Exchange Committee, Nokia said it had launched an investigation after being made aware of “certain practices relating to compliance issues” at the French firm, which it acquired in 2016.
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Nokia added it had reported the matter to regulatory authorities and warned the resolution of the issue could result in potential criminal or civil penalties.
But the Finnish company issued a statement after shares plunged, clarifying that it had seen no evidence suggesting criminal penalties would apply and that any penalties would be “limited and immaterial”.
A Nokia spokesperson said: “To ensure complete compliance we are now scrutinising 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.”
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The report came a day after it emerged Finland will open an inquiry into Nokia-branded phones amid concerns the handsets sent data to China.
The Nokia 7 Plus model is manufactured by Finnish firm HMD, but Nokia receives royalties for the sale of every device.