Can anyone explain the Lucent-Alcatel / Nokia share exchange deal?

[Argyle]

I inherited some stock in Lucent-Alcatel.  The company is now being taken over/acquired/bought by Nokia.  Okay, I think I've understood that part.

But they've sent a big prospectus "recommending" that I exchange all my Lucent-Alcatel shares for Nokia shares.  This is the part I don't understand.  I would have expected that the shares I own would just acquire a new company name. 

Why do I have to choose to exchange them for Nokia shares?

And what happens if I don't exchange them?  I then continue to have Lucent-Alcatel shares, which — what?

Can anyone shed light on this?

[protostache]

It's impossible to say without the prospectus in front of me, but it's possible that if you don't swap they'll just buy the shares for cash.

[MDM]

See https://www.bogleheads.org/forum/viewtopic.php?f=1&t=178056.

The very last line seems reasonable: "Take your loss, sell your [ALU] stock, buy more index funds, and never look behind. At least, you will save on some taxes to come."