Nokia jumps as Motorola Mobility bid rekindles M&A hope

Mon Aug 15, 2011 10:57am EDT

(Adds detail, background, quotes)

HELSINKI Aug 15 (Reuters) - Nokia Oyj (NOK1V.HE) shares jumped over 10 percent on Monday as Google Inc's (GOOG.O) offer for Motorola Mobility Holdings (MMI.N) rekindled speculation of a bid for the Finnish mobile phone company.

Nokia's shares have fallen around 45 percent since the start of the year, prompting some speculation the stock could be getting cheap enough to tempt a bidder. The company, once the leader in smartphones, has been losing market share in both high-end devices and cheaper phones.

Google said it was paying around $12.5 billion in cash, or $40 per share, a 63 percent premium to Motorola Mobility's closing price on Friday. [ID:nL3E7JF1LD]

"This price should ring bells on how low Nokia shares currently are. And if you think of patents, now Nokia is the one with a really strong patent portfolio," said Swedbank analyst Jari Honko. "I'd expect this will boost the speculation whether Nokia would be a takeover target too."

Nokia shares were up 8.7 percent at 4.07 euros by 1302 GMT, having risen as high as 4.28 euros.

One Swiss-based trader said the Google deal gave Nokia shares a "huge sentiment boost".

Both Microsoft Corp (MSFT.O), which is partnering with Nokia for its new phones, and Samsung Electronics (005930.KS), have been mentioned as possible buyers.

Nokia officials were not immediately available for comment.

(Reporting by Helsinki Newsroom; Editing by David Holmes)

((ritsuko.ando@thomsonreuters.com; +358-9-680 50 242; Reuters Messaging: ritsuko.ando.thomsonreuters.com@reuters.net)) Keywords: NOKIA/

(C) Reuters 2011. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.