- In his Q3 investor letter, Dan Loeb says Third Point took a stake in Nokia (NOK +2.1%) after the Microsoft deal was announced, and thinks "either a buyback or special dividend is possible" once the deal (set to leave Nokia with €8B in net cash) closes.
- Given Loeb's history, look for him to push for cash returns if Nokia doesn't take the initiative to deliver them. Multiple reports have indicated Nokia is interested in using a chunk of its cash balance for M&A.
- Loeb adds 40% of Nokia's market cap is now covered by pro forma net cash, and that all three of its remaining businesses (NSN, Here, IP licensing) are cash flow positive.
- He talks up NSN's restructuring efforts, Here's "exceptional share" (pegged at 80%-90%) of the automotive navigation market, and licensing opportunities opened up by Nokia's 10K patent families.
- Earlier: Loeb reportedly takes stake in Nokia
Loeb discloses Nokia stake in letter, thinks dividend/buyback is possible
Oct 22 2013, 10:47 ET