Microsoft (MSFT) and Nokia (NOK) Talks Recently Broke Down Over Device Unit
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Overall Analyst Rating:
BUY (= Flat)
Dividend Yield: 0.7%
Revenue Growth %: +15.0%
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(Updated - June 19, 2013 4:16 PM EDT)
Nokia (NYSE: NOK) is active in late trading Wednesday following Dow Jones headlines that talks between it and Microsoft (Nasdaq: MSFT) recently broke down.
Reports have Microsoft and Nokia in advanced talks for Microsoft to purchase Nokia's device business. One source said talks were ongoing as recently as this month, but have since come to a halt. Sources said Microsoft walked away due to the price and Nokia's place in the mobile market.
While Microsoft didn't comment, a Nokia spokesperson said, "We have a deep partnership with Microsoft and it is not uncommon for Nokia and Microsoft to meet on a regular basis." Talks were held in London.
Microsoft has about $66 billion of offshore cash, which would easily be enough to fund a deal. Like Apple (Nasdaq: AAPL), repatriating the funds would slap Microsoft with a large U.S. tax bill.
Nokia lept higher earlier in the week on the Financial Times piece that Chinese mobile giant Huawei might be interested in acquiring the firm. Shares pared some of the gains today as Huawei said it wasn't pursuing a deal.
In late trading, Nokia is up 2.6 percent while Microsoft is down 0.5 percent.
Nokia (NYSE: NOK) is active in late trading Wednesday following Dow Jones headlines that talks between it and Microsoft (Nasdaq: MSFT) recently broke down.
Reports have Microsoft and Nokia in advanced talks for Microsoft to purchase Nokia's device business. One source said talks were ongoing as recently as this month, but have since come to a halt. Sources said Microsoft walked away due to the price and Nokia's place in the mobile market.
While Microsoft didn't comment, a Nokia spokesperson said, "We have a deep partnership with Microsoft and it is not uncommon for Nokia and Microsoft to meet on a regular basis." Talks were held in London.
Microsoft has about $66 billion of offshore cash, which would easily be enough to fund a deal. Like Apple (Nasdaq: AAPL), repatriating the funds would slap Microsoft with a large U.S. tax bill.
Nokia lept higher earlier in the week on the Financial Times piece that Chinese mobile giant Huawei might be interested in acquiring the firm. Shares pared some of the gains today as Huawei said it wasn't pursuing a deal.
In late trading, Nokia is up 2.6 percent while Microsoft is down 0.5 percent.
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