It could be an outright merger, but I am guessing that depending on the position the French Government takes, it could drive Nokia to only take over the cellular business, seems they are testing the waters to see how far NOK will drive this deal.  my preference would be just selling the Wireless division, as it would leave far more room for ALU to move higher over the very long term.

Nokia, Alcatel-Lucent CEOs to meet with France's Hollande

PARIS, APRIL 14

(Reuters) - The chief executives of Nokia and Alcatel-Lucent are set to meet French President Francois Hollande on Tuesday after the telecommunications equipment makers said they were in advanced tie-up talks, a source at the French presidency said.