(Telecompaper) Nokia and Alcatel-Lucent reached an agreement on the terms of their proposed merger. Nokia will offer 0.55 of its shares for each Alcatel-Lucent share, valuing the company at EUR 15.6 billion or EUR 4.27 per share. This is a premium of 28 percent to the average share price over the three months before the merger talks were announced. Alcatel-Lucent shareholders would own 33.5 percent of the new company, which will continue under the name Nokia. Nokia's current chairman and CEO, Risto Siilasmaa and Rajeev Suri, will continue to lead the company, and the new Nokia will remain headquartered in Finland with a "strong presence" in France. Alcatel-Lucent will have three members on the board of 9-10 members, including the role of vice chairman. Pending approval by Nokia's shareholders and regulators, the takeover is expected to close in the first half of 2016. By 2019, the companies expect to achieve EUR 900 million in operating cost savings from the merger. They also forecast EUR 200 million in savings in interest costs by 2017.