Bid for All of Nokia (NOK) 'Unrealistic'; Nokia Siemens Networks Might Draw Attention - Analyst

June 8, 2012 11:06 AM EDT
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Price: $4.68 -1.68%

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Nokia (NYSE: NOK) shares are popping higher Friday morning on a little bit of M&A chatter, though one firm is trying to throw a wet blanket on the entire thing.

According to research firm Exane, it would be "unrealistic" to speculate on handset makers bidding for all of Nokia. The main reason behind Exane's argument is Nokia's deteriorating fundamentals.

Instead, Exane mulls the potential for a bid on Nokia Siemens Networks (NSN), a joint venture between Nokia and Siemens AG (NYSE: SI). The entity might draw interest from an OEM giant like Samsung due to its global footprint, Exane noted. However, why Samsung would show any interest in the "dreadful" telecom sector remains a mystery, said Exane.

Shares of Nokia are up about 6.7 percent on heavier volume.

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