Seeking Alpha

Nokia (NOK) has reached a deal to buy Siemens' (SI) 50% stake in Nokia Siemens for a price below...

Nokia (NOK) has reached a deal to buy Siemens' (SI) 50% stake in Nokia Siemens for a price below €2B ($2.6B), 3 sources tell Bloomberg. Nokia will reportedly use a bridge loan to help finance the deal, which gives a lower valuation to the telecom equipment JV than those typically provided by analysts (I, II). Though the deal will affect Nokia's net cash position (€4.5B at the end of Q1), investors might react favorably, given the price, NSN's profitability, and that fact the business is seen as having less risk attached than Nokia's phone ops. (Reuters report) (WSJ report)
Comments (27)
  • stealthology
    , contributor
    Comments (312) | Send Message
     
    Interesting. What do we see in premarket for Nokia?
    30 Jun 2013, 08:39 PM Reply Like
  • pmamaclay
    , contributor
    Comments (5) | Send Message
     
    the wheels have turned , hang tight folks,this is what weve been waiting for
    1 Jul 2013, 12:14 AM Reply Like
  • La Rue
    , contributor
    Comments (757) | Send Message
     
    Should be up, but either way in the long term it is great news.

     

    Long Nokia.!
    30 Jun 2013, 08:41 PM Reply Like
  • Dantes_Will
    , contributor
    Comments (343) | Send Message
     
    Don't know about the direction of the market, but his is an incredible deal Nokia has pulled off.

     

    During the Hwawei/MSFT buyout rumors, most analysts were valuing NSN anywhere from 7 to 12 Billion. Getting control of NSN for 2.6 B is a steal.

     

    I'm willing to bet that NOK plans to hold NSN while 4G adaptation keeps growing, then IPO the unit for a nice cash return.
    30 Jun 2013, 09:06 PM Reply Like
  • Dantes_Will
    , contributor
    Comments (343) | Send Message
     
    Oh... and for those who read between the lines.

     

    The fact that Elop is willing to throw out 2.6BB to finance a huge purchase like this right now, shows that Nokia has little to no worries about their near term cash flow.

     

    This is a huge tell.
    30 Jun 2013, 09:08 PM Reply Like
  • Seppo Sahrakorpi
    , contributor
    Comments (1971) | Send Message
     
    @DW Exactly my thinking too. I just cancelled my swing trade limit sells, and will wait and see this baby fly :)
    30 Jun 2013, 09:12 PM Reply Like
  • Seppo Sahrakorpi
    , contributor
    Comments (1971) | Send Message
     
    Fantastic news! Great price for a golden, now turned around, business, that will maintain Nokia Group's diversity.
    30 Jun 2013, 08:41 PM Reply Like
  • flybywire54
    , contributor
    Comments (724) | Send Message
     
    Great news for Nokia and for us as well .
    30 Jun 2013, 08:51 PM Reply Like
  • Stock Market Mike
    , contributor
    Comments (2256) | Send Message
     
    Awesome! NOK is one of my larger holdings! (via call options) I was hoping Nokia would do this!
    30 Jun 2013, 08:55 PM Reply Like
  • shangjeen
    , contributor
    Comments (337) | Send Message
     
    This is awesome news. The price is a huuuuge surprise. I was actually expecting closer to $4B....considering that NSN has been one of the more profitable divisions of Nokia.

     

    Long NOK and will get longer.
    30 Jun 2013, 09:11 PM Reply Like
  • Donald Blum
    , contributor
    Comments (96) | Send Message
     
    Perhaps the hardest thing to do, buy when you can least afford it. Guarantees you drive the hardest bargain. Looks like Nokia did so here. Hopefully, they will do the same when they sell--when they least need to, again driving the hardest bargain. However, let's not get too ahead of ourselves, shangjeen is very correct--best price out there was around $4B....the rest is just way overdone.
    30 Jun 2013, 09:28 PM Reply Like
  • Omarsiddiqi
    , contributor
    Comments (25) | Send Message
     
    I believe this is a great move by Nokia. Much better than selling its stake in NSN. This also further validates my belief that Nokia is getting confident about itself and its future. Long Nokia and will get longer.
    30 Jun 2013, 09:31 PM Reply Like
  • Seegood
    , contributor
    Comments (9) | Send Message
     
    I'm buying more NOK Monday morning.
    30 Jun 2013, 09:35 PM Reply Like
  • JMstocks75
    , contributor
    Comments (250) | Send Message
     
    seems like a great move, I have 928, Im using, it solid, I rate it a B, but shortners will find a way to create panic to force a sell off tommorrow
    30 Jun 2013, 09:48 PM Reply Like
  • La Rue
    , contributor
    Comments (757) | Send Message
     
    Excuse me, oh never mind :\
    30 Jun 2013, 09:51 PM Reply Like
  • Ruffdog
    , contributor
    Comments (1611) | Send Message
     
    Me thinks that "shortners" will get the blood squeezed out of them!
    30 Jun 2013, 10:02 PM Reply Like
  • Vínbúðin
    , contributor
    Comments (21) | Send Message
     
    Careful! Remember Black(berry) Friday. Wishes of an epic squeeze like Volkswagen, Netflix or Tesla are delusional.

     

    Also, one should ask, why the price is so low, given that Siemens is not in dire need of an instant cash infusion.
    1 Jul 2013, 01:39 AM Reply Like
  • EMS
    , contributor
    Comments (579) | Send Message
     
    I've never owned NOK. Looking at the long term chart it looks like it could potentially break-out at 5 or so. Why would I buy before then ?
    30 Jun 2013, 09:53 PM Reply Like
  • mc10010
    , contributor
    Comments (170) | Send Message
     
    it will fly past $5
    30 Jun 2013, 10:05 PM Reply Like
  • CptPicard
    , contributor
    Comments (54) | Send Message
     
    Speculation has it that on Monday MSFT might announce they are buying the smartphones. This might be a reason why NOK can splash the cash.
    30 Jun 2013, 10:14 PM Reply Like
  • Matt-Man
    , contributor
    Comments (552) | Send Message
     
    in addition news that NSN will sell all of its manufacturing capacity to oem:s, pricetag around 500me
    30 Jun 2013, 11:02 PM Reply Like
  • JayXu
    , contributor
    Comments (266) | Send Message
     
    good news to me.
    30 Jun 2013, 11:44 PM Reply Like
  • pmamaclay
    , contributor
    Comments (5) | Send Message
     
    This is it
    1 Jul 2013, 12:12 AM Reply Like
  • scottw112
    , contributor
    Comments (14) | Send Message
     
    Here is where the sharks come in
    1 Jul 2013, 12:14 AM Reply Like
  • toraji
    , contributor
    Comments (790) | Send Message
     
    Good job Elo?

     

    Can't wait to see what will happen

     

    Sleep well all

     

    1 Jul 2013, 12:20 AM Reply Like
  • Kevinsnap
    , contributor
    Comments (3) | Send Message
     
    More great articles coming soon! Be ready guys, Nokia is gonna rocket up.
    1 Jul 2013, 01:38 AM Reply Like
  • Timothy Bryan
    , contributor
    Comments (762) | Send Message
     
    Awaiting for opening in Europe!
    1 Jul 2013, 01:56 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector