Nokia Oyj (NOK1V), the world’s biggest maker of mobile phones by volume, climbed the most in 1 1/2 years in Helsinki trading after Google Inc. (GOOG) agreed to acquire Motorola Mobility Holdings Inc. for about $12.5 billion.
Google, whose Android software powers handsets made by Motorola Mobility and manufacturers including Samsung Electronics Co. and LG Electronics Inc. (066570), will win wireless patents it needs to compete against Apple Inc.’s iPhone. The linkup may shift some Android phone manufacturers away from Google to consider platforms such as Microsoft Corp. (MSFT)’s Windows Phone, which was adopted by Nokia this year, said Lee Simpson, an analyst at Jefferies International in London.
“It might start to put Microsoft into focus as an alternative platform now, which could indirectly benefit Nokia,” Simpson, who has an “underperform” rating on Nokia shares, said in a telephone interview.
Espoo, Finland-based Nokia surged 34 cents, or 9.1 percent, to 4.09 euros at the close of trading in Helsinki for its steepest increase since January 2010. The surge pared the stock’s decline this year to 47 percent, valuing the company at 15.3 billion euros ($22 billion). Microsoft added 0.9 percent to $25.32 at 12:37 p.m. in New York.
Takeover Speculation
Chief Executive Officer Stephen Elop, a former Microsoft executive who took over in September last year, is retiring Nokia’s Symbian operating system in favor of Windows Phone as he seeks to arrest a loss in smartphone market share to iPhones and Android handsets.
The linkup with Microsoft has fuelled speculation that the U.S. software company may take over Nokia. Elop said as recently as on June 1 that the speculation was “baseless.”
Google said today it will pay a premium of 63 percent to Motorola Mobility’s closing price last week for the Libertyville, Illinois-based manufacturer. A similar markup would value Nokia at 6.11 euros per share, or 22.9 billion euros in total, based on yesterday’s closing price.
“Nokia as another potential takeover candidate obviously benefits from that hefty premium,” said Sami Sarkamies, a Helsinki-based analyst at Nordea Bank. With Nokia, “there is quite a bit more on the table and yet there is little difference between the valuations of the two companies.
Source
Google, whose Android software powers handsets made by Motorola Mobility and manufacturers including Samsung Electronics Co. and LG Electronics Inc. (066570), will win wireless patents it needs to compete against Apple Inc.’s iPhone. The linkup may shift some Android phone manufacturers away from Google to consider platforms such as Microsoft Corp. (MSFT)’s Windows Phone, which was adopted by Nokia this year, said Lee Simpson, an analyst at Jefferies International in London.
“It might start to put Microsoft into focus as an alternative platform now, which could indirectly benefit Nokia,” Simpson, who has an “underperform” rating on Nokia shares, said in a telephone interview.
Espoo, Finland-based Nokia surged 34 cents, or 9.1 percent, to 4.09 euros at the close of trading in Helsinki for its steepest increase since January 2010. The surge pared the stock’s decline this year to 47 percent, valuing the company at 15.3 billion euros ($22 billion). Microsoft added 0.9 percent to $25.32 at 12:37 p.m. in New York.
Takeover Speculation
Chief Executive Officer Stephen Elop, a former Microsoft executive who took over in September last year, is retiring Nokia’s Symbian operating system in favor of Windows Phone as he seeks to arrest a loss in smartphone market share to iPhones and Android handsets.
The linkup with Microsoft has fuelled speculation that the U.S. software company may take over Nokia. Elop said as recently as on June 1 that the speculation was “baseless.”
Google said today it will pay a premium of 63 percent to Motorola Mobility’s closing price last week for the Libertyville, Illinois-based manufacturer. A similar markup would value Nokia at 6.11 euros per share, or 22.9 billion euros in total, based on yesterday’s closing price.
“Nokia as another potential takeover candidate obviously benefits from that hefty premium,” said Sami Sarkamies, a Helsinki-based analyst at Nordea Bank. With Nokia, “there is quite a bit more on the table and yet there is little difference between the valuations of the two companies.
Source
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