Nokia loses India tax appeal, considers next move in Microsoft deal

|About: Nokia Corporation (NOK)|By:, SA News Editor

Nokia (NOK -0.4%) says it is considering its options after India's Supreme Court rejected its appeal against a demand for a multimillion-dollar payment before it transfers a mobile phone plant and other assets in the country to Microsoft (MSFT -0.2%).

The ruling upholds a lower court verdict ordering NOK to pay a 35B rupee ($572.5M) guarantee after local authorities blocked the factory's transfer in a tax dispute; as a result, the factory - a critical part of the smartphone business MSFT is purchasing - remains shut.

If the Indian manufacturing plant is not transferred to MSFT, it could mean less money for NOK from the deal; NOK could run it as a contractor to MSFT but not for long, the company has said in court hearings.