Seeking Alpha

Report: Nokia eyes Juniper

  • Nokia (NOK +0.7%) is reportedly considering making a bid for Juniper Networks (JNPR) and combining it with Nokia Solutions & Networks (NSN).
  • NSN CEO Rajeev Suri held talks with Juniper's management last year about deepening their collaboration and about a merger, which would improve NSN's weak operations in the U.S.
  • Juniper's market cap is $13.73B, around half of Nokia's $26.99B; the latter could use the U.S. company's $3.1B in cash to help fund the deal.
Comments (45)
  • Andreas Hopf
    , contributor
    Comments (7886) | Send Message
     
    After what seems like ages an idea surfaces that would actually make sense.
    20 Feb, 07:12 AM Reply Like
  • dwdallam
    , contributor
    Comments (6650) | Send Message
     
    Ah,
    Hmm. SP should definitely tank then. However, I'm not sure Nokia can afford it, even with Junipers cash. They would still be short around 4-7B. How would this play out? Also, after the merger or buyout, that would make Nokia around a 44B Cap company?
    20 Feb, 06:22 PM Reply Like
  • dwdallam
    , contributor
    Comments (6650) | Send Message
     
    AH,
    I'm thinking, maybe, "Jokia" as the new name?
    20 Feb, 06:27 PM Reply Like
  • mKiwi
    , contributor
    Comments (575) | Send Message
     
    Out of the frying pan .......
    20 Feb, 11:36 PM Reply Like
  • gwynfryn
    , contributor
    Comments (3886) | Send Message
     
    Yep, it's a risky move, but if they can find the money, it does make sense.
    21 Feb, 08:52 AM Reply Like
  • el stevadore
    , contributor
    Comments (143) | Send Message
     
    wait a minute, wasn't the cash from microsoft to help their debt rating? don't they have 8B in debt? does that affect the JNPR math at all?
    22 Feb, 01:17 AM Reply Like
  • joshvegas
    , contributor
    Comments (270) | Send Message
     
    Suri for CEO!
    20 Feb, 07:40 AM Reply Like
  • La Rue
    , contributor
    Comments (678) | Send Message
     
    I like it !
    20 Feb, 08:01 AM Reply Like
  • Ruffdog
    , contributor
    Comments (1244) | Send Message
     
    "Juniper's market cap is $13.73B, around half of Nokia's $26.99B..." NOK has the backing of MSFT and can go to daddy and get another loan. I wonder what conditions MSFT will put on the loan?

     

    Long NOK and MSFT.
    20 Feb, 08:09 AM Reply Like
  • dwdallam
    , contributor
    Comments (6650) | Send Message
     
    Where did you ever get the information that MS cares less about this deal, or backs it, or would loan any money to Nokia? Links please.
    20 Feb, 06:24 PM Reply Like
  • gwynfryn
    , contributor
    Comments (3886) | Send Message
     
    I'd say MS's only concern in this respect, is whether or not they'll be able to complete their acquisition of the phones division!
    21 Feb, 08:54 AM Reply Like
  • Videnak
    , contributor
    Comments (42) | Send Message
     
    This actually means no special dividend. I should have sold the stock in December. The stock will sink today.
    20 Feb, 09:08 AM Reply Like
  • Timothy Bryan
    , contributor
    Comments (707) | Send Message
     
    But if it is done right it will right the stock price 3-4 dollars a share in short order.
    20 Feb, 11:24 AM Reply Like
  • Joeriii
    , contributor
    Comments (197) | Send Message
     
    "The stock will sink today."

     

    Wow.. we have a PRO here... LMAO
    20 Feb, 01:29 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (7886) | Send Message
     
    Acktchoualley, on da nooz, No-key-yah popp-a-dee popped a whoppin' showstoppin' 0,3% to-day!
    20 Feb, 03:00 PM Reply Like
  • Gregory Block
    , contributor
    Comments (95) | Send Message
     
    As the saying goes, it's like kissing your sister...
    20 Feb, 03:16 PM Reply Like
  • dwdallam
    , contributor
    Comments (6650) | Send Message
     
    Diablo,
    Quick calculation, all thing being equal, we just add together each company's market cap, and get 44B for Jokia.
    20 Feb, 06:27 PM Reply Like
  • dwdallam
    , contributor
    Comments (6650) | Send Message
     
    Stock usually does sink on any good news, for some reason.
    20 Feb, 06:28 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (7886) | Send Message
     
    Nokia always (one exception) sinks on corporate events, product launches, etc., but not on rumours/news - hence the mind boggling 0,5% pop today : )
    20 Feb, 07:42 PM Reply Like
  • Videnak
    , contributor
    Comments (42) | Send Message
     
    OK. It didnt. In that case it is just a rumor.
    21 Feb, 03:37 AM Reply Like
  • Kamminga
    , contributor
    Comments (186) | Send Message
     
    No special div.

     

    Phew!
    20 Feb, 09:30 AM Reply Like
  • Mike Andrewes
    , contributor
    Comments (75) | Send Message
     
    Wow, this is the most exciting possible merger or takeover I've heard about in a long time. In the age of tech bubble 2.0 (which I feel officially and unequivocally started yesterday with the Facebook purchase of WhatsApp) it's refreshing to see something that can be monetarily productive within a short period of time.

     

    Was thinking of selling Nokia, but as DiCaprio said in Django Unchained, "you had my curiousity, but now you have my attention."
    20 Feb, 09:55 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (8167) | Send Message
     
    Nokia or Blackberry?

     

    Which is the better buy right now?
    20 Feb, 10:00 AM Reply Like
  • Andreas Hopf
    , contributor
    Comments (7886) | Send Message
     
    A or TSM.
    20 Feb, 11:51 AM Reply Like
  • Andreas Hopf
    , contributor
    Comments (7886) | Send Message
     
    A is the better pick, as it turns out.
    20 Feb, 03:03 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8167) | Send Message
     
    Man, Andreas Hopf, even I saw the light and now recognize Nokia's deep value.

     

    How anybody can still be short NOK is beyond me.
    20 Feb, 10:06 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (7886) | Send Message
     
    NOK short interest is low these days.
    21 Feb, 12:59 AM Reply Like
  • Timothy Bryan
    , contributor
    Comments (707) | Send Message
     
    hmm looks like a good idea if they can fund it....
    20 Feb, 10:43 AM Reply Like
  • Andreas Hopf
    , contributor
    Comments (7886) | Send Message
     
    Easy. Sell HERE : )
    20 Feb, 11:05 AM Reply Like
  • asifruman
    , contributor
    Comments (75) | Send Message
     
    where ?? :D ;)
    20 Feb, 02:20 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (7886) | Send Message
     
    To Huawei or Alibaba.
    20 Feb, 03:04 PM Reply Like
  • dwdallam
    , contributor
    Comments (6650) | Send Message
     
    AH,
    That would make them a pure play network company and I don't think they see it that way. They have too many other things cooking int eh AT department to cut HERE completely.
    -
    That being said, if they do buy Juniper they will become the definitive network company in the world. That should drive contracts through the roof. CISCO is now a dirty word in Asia, leaving the door wide open for a Nokia/Juniper take over in that market. Go Jokia!
    20 Feb, 06:31 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (7886) | Send Message
     
    Juniper is overpriced. Nokia would need loadsamoney. No special divident or even regular dividend worth writing home about would ensue. But maybe a merger would provide the much needed CEO.
    20 Feb, 07:44 PM Reply Like
  • gwynfryn
    , contributor
    Comments (3886) | Send Message
     
    Yes, that's a thought AH, and that way, once they get MS's money, they'd be cash rich indeed! Then maybe they'd pay out that dividend...
    21 Feb, 09:04 AM Reply Like
  • sidiji
    , contributor
    Comments (145) | Send Message
     
    jnpr too expensive after the very obvious insider buying of jnpr and selling nokia based on this rumor since December last year, this is a bad idea, maybe a merger makes sense when jnpr was at $19 but not $29.

     

    so now we know why the selloff and shorting despite good q4 numbers in January, and I just bet they released the news of the rumor today just so those inside traders can close out their jnpr long and nokia short positions
    20 Feb, 11:19 AM Reply Like
  • dwdallam
    , contributor
    Comments (6650) | Send Message
     
    Sid,
    It doesn't really matter as long as it's a fair price, since they will be one company anyhow. So do you think JNPR is over valued?
    20 Feb, 06:43 PM Reply Like
  • Timothy Bryan
    , contributor
    Comments (707) | Send Message
     
    If they could get enough for it, that would be a great idea. Problem is, they probably can't. If we assume 5 billion in cash plus Juniper's 3.1 billion plus 5 billion for HERE (best case), that still leaves us 3-4 billion short (assuming a 20% premium for the purchase).
    It wouldn't be cheap...
    20 Feb, 11:22 AM Reply Like
  • Timothy Bryan
    , contributor
    Comments (707) | Send Message
     
    Maybe they can get the rest of the money for funding by licensing the NOK name to MSFT for the Lumia line...just thinking out loud here
    20 Feb, 11:25 AM Reply Like
  • mitrado
    , contributor
    Comments (1948) | Send Message
     
    "Juniper's market cap is $13.73B." - A bit less of what $FB paid for WhatsApp. What a crazy world it is.
    20 Feb, 12:56 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (7886) | Send Message
     
    JNPR makes useful things, so that doesn't count. We must invest in beez neez to waterboard consumers with even more ads.
    20 Feb, 03:08 PM Reply Like
  • Chancer
    , contributor
    Comments (2545) | Send Message
     
    Juniper's market cap may be $13.73B with shares trading at $27.98, but many value company at $40, which is 42+% more. Activist shareholders, Elliott Management and Jana Partners own over 10%, so they will have significant influence on any deal. 42% higher price would make it $19.5B deal. That is lots of cash or NOK shares. Is it worth it?
    20 Feb, 02:09 PM Reply Like
  • dwdallam
    , contributor
    Comments (6650) | Send Message
     
    Chan
    It would be worth it for both companies. This isn't a hostile takeover or anything like that. Both companies will need to roll the numbers to see if it is a good deal for both. I think it is a great deal for booth companies simply because it will make them super competitive in the already saturated network market. It could give them many more future contracts after they become a super network company. That would leave only ALU and CISCO, and CISCO is not getting anywhere in Asia.
    20 Feb, 06:46 PM Reply Like
  • Matt-Man
    , contributor
    Comments (516) | Send Message
     
    I do not think Nokia can buy Juniper as that would be too tight financial setup afterwards, merger is one option
    20 Feb, 02:49 PM Reply Like
  • dwdallam
    , contributor
    Comments (6650) | Send Message
     
    Matt,
    I think that is a good bet.
    20 Feb, 06:47 PM Reply Like
  • joshvegas
    , contributor
    Comments (270) | Send Message
     
    Someone should write an article about Juniper - pros and cons (not to mention some basic details).
    21 Feb, 08:56 AM Reply Like
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