One of the world’s three largest suppliers of equipment to telecom operators – Finland’s Nokia – was analyzing strategic options for part of its mobile business and attracted interest from companies such as Samsung Electronics – Bloomberg reported on Thursday, followed by Reuters.
Nokia has caught Samsung’s attention
Bloomberg cited people familiar with the matter without disclosing the sources of the information. The US News Agency reported that Nokia was considering several scenarios: from selling all or part of its component manufacturing business and building mobile networks. These analyses are expected to lead to the conclusion that this segment of Nokia is worth up to $10 billion. The options considered by the Finns would also include joining forces with one of its rivals.
As Reuters notes, news of the potential deal comes after Nokia’s operating profit fell 32% in the second quarter of this year due to a drop in orders for 5G network equipment.
Samsung Electronics, the world’s largest maker of microprocessors, smartphones and televisions, has even expressed initial interest in taking over Nokia’s assets. Talks are at an early stage, Bloomberg noted.
Nokia share price rises
The news sent shockwaves through Nokia’s share price (up 7-8 percent to over 4 euros per share), and late in the evening the company issued a statement. “Nokia is releasing stock exchange information in response to recent trader activity in its shares, triggered by market rumors,” it said.
