Nokia is in advanced talks to buy French rival Alcatel-Lucent.<br /><br /> If the purchase goes ahead it will create a European telecoms equipment group worth some €40bn.<br /><br /> The move marks a sensational turnaround by the Finnish company, which was in severe financial straits two years ago before selling its mobile phone division to Microsoft.<br /><br /> Both companies say that the deal is by no means certain.<br /><br /> The buyout has come under French government scrutiny as Paris sees the communications industry as strategic and any job losses will infuriate the administration.<br /><br /> Alcatel-Lucent is currently going through some severe restructuring after losing sales in its core US and European markets.<br /><br /> Shares in the French company moved up some 14 percent in <br />Paris trading.
