Lenovo to Buy Nokia? Market Rumors Point Towards That
Here is the WTF news of the day! ET talks about the top Chinese PC maker, Lenovo, being interested in buying the Finnish Mobile & networking major, Nokia. But Gianfranco Lanci, who runs Lenovo’s operations in Europe, Middle East and Africa has dismissed the rumors, by calling it a joke.
Nevertheless, Nokia’s shares have jumped up 11 percent today on the basis of these rumors. This comes after Nokia’s shares tumbled to an all-time low of €1.50 just a few days back. According to BusinessWeek, this is the biggest 7-day gain posted by Nokia since 1991.
Nokia – A lucrative takeover target
Nokia has been struggling to make a mark ever since Apple’s iPhone & Samsung’s Android handsets captured the smartphone market. Nokia has even lost some grounds in the feature phone markets as well. In June, Nokia had announced 10,000 job cuts and the closure of the Salo manufacturing plant.
Along with RIM, Nokia is surely a lucrative takeover target for several companies. They still possess some of the best brains in the industry. Their R&D labs are amongst the best, and not to forget, their mapping solutions are amongst the best as well.
Nokia has been pinning its hopes on Microsoft’s upcoming Windows Phone 8 & Windows 8 releases. Interestingly, Lenovo too had announced its intentions to come out with a Windows Phone 8 handset in the near future.
Nokia has declined to comment on this rumor.[via] ET