O.T. Cisco buying Nokia?
Nokia Shares Up on Takeover Plan Report By MATTI HUUHTANEN, Associated Press Writer
2 hours, 15 minutes ago
HELSINKI, Finland - Nokia Corp. shares rose Monday after a report that Cisco Systems Inc. was interested in an acquisition in the wireless market and that the Finnish mobile phone maker might be a target.
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Shares shot up 3.3 percent to 13.35 euros (US16.51 euros) and closed at 13.06 euros ($16.15), 1 percent higher than Friday, following the report on Sunday in The Business paper in Britain.
The paper, without citing its sources, said that San Jose, California-based Cisco was considering buying a wireless company, and that Nokia had been identified as the most likely target. Both companies declined to comment to The Associated Press on the report.
"We don't comment on any sort of rumor, ever," said Cisco spokeswoman Elizabeth McNichols.
Speculation about takeovers and possible mergers have been rife since Nokia became the world's largest mobile phone maker in the mid-1990s. Nokia watchers in Helsinki dismissed the latest report.
"Most likely, it's just a rumor ... based on unfounded market rumors circulating on the Internet," said Erik Suckdorff, an analyst at FIM Securities.
Hannu Rauhala from Opstock said such an acquisition was unlikely.
"It's difficult to see that any other company would be able to get more efficiency out of Nokia than the company itself," Rauhala said. "The markets and products are so different (for the two companies) that it's difficult to see any possible synergy benefits."
Nokia announced last week that its longtime CEO Jorma Ollila, who steered the company from making consumer electronics and cables to become the world's No. 1 mobile-phone maker, would retire on June 1. In a move that signaled continuity, Nokia said he will be replaced by Olli-Pekka Kallasvuo, the head of its mobile phones unit, who belonged to Ollila's core team that transformed the small Finnish company into an international player.
Nokia, based in Espoo just outside Helsinki, has sales in 130 countries and about 55,500 employees.
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