Nokia is allegedly defending itself against a hostile takeover. Rumor has it that the telecom company is working with an investment bank to stop the takeover. Nokia has not responded to the rumors.
According to the rumours, Nokia hired the investment banker Citi to help defend itself against the takeover. Apparently, a full acquisition or an acquisition of certain parts of the company. It is unknown which company wants to acquire Nokia.
The rumors did cause Nokia’s share price to rise last Thursday by 12.5 percent to 3.19 euros per share. Nokia’s share price has fallen sharply over the past twelve months, because the company lost considerable ground in the 5G race to its rivals Ericsson and Huawei. On April 24, 2019, Nokia’s share price was still 5.16 euros per share. In mid-March 2020, the share hit a low when one share was worth only 2.20 euros.
Future of Nokia
Together with Ericsson, Huawei and ZTE, Nokia is one of the few companies that has 5G technology for telecom operators on a large scale. Parts of the 5G network in France are provided by the company and in Belgium the Finnish manufacturer is working with Citymesh for a 5G network.
A Bloomberg report in February suggested Nokia was exploring a number of strategic options to increase its share price, including a series of divestments. The report also claimed that Nokia would consider possible mergers for its ancillary activities.