Nokia shares jump 6 percent amid buyout rumors

Fri Jun 8, 2012 12:49pm EDT

Nokia CEO Stephen Elop displays the Nokia Lumia 900 smartphone at the Consumer Electronics Show opening in Las Vegas January 9, 2012. REUTERS/Rick Wilking

Nokia CEO Stephen Elop displays the Nokia Lumia 900 smartphone at the Consumer Electronics Show opening in Las Vegas January 9, 2012.

Credit: Reuters/Rick Wilking

Reuters - Shares in Finnish mobile phone maker Nokia (NOK1V.HE) rose 6 percent in heavy volume on Friday driven higher by speculation of takeover interest from South Korean rival Samsung Electronics (005930.KS), traders said.

The sharp rise made Nokia the biggest gainer on the FTSEurofirst 300 .FTEU3 index and followed a 40 percent fall in the shares in the past three months.

Analysts played down the chances of a bid from Samsung for Nokia, which has been rapidly losing market share.

"Samsung is flying at the moment and it is hard to see what it would gain from buying Nokia," Ovum analyst Nick Dillon said. "Any benefit it would gain from Nokia's patent portfolio or manufacturing facilities would likely be outweighed by the complexities of integrating the two companies."

Ben Wood, head of research at CCS Insight, said: "This is Friday madness. I can't think of a rational reason why Samsung would want to buy Nokia at present,"

Nokia shares have moved sharply on speculation of possible takeovers since its stock dived last year due to a strategy shift in its smartphone business. Microsoft (MSFT.O), which is partnering Nokia for its new smartphones, has been seen as the most likely buyer.

Nokia declined to comment and Samsung was not immediately available for comment.

(Reporting by Tarmo Virki. Editing by Jane Merriman)

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (1)
mulholland wrote:
Finland lacks the imagination to develop new products.

Jun 08, 2012 3:13pm EDT  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.