Will a Merge With Juniper Networks Help Send Nokia Higher?

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With shares of Nokia (NYSE:NOK) trading around $7, is NOK an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Nokia operates as a mobile communications company worldwide. It designs and develops mobile products and services; provides digital map information and related location-based content and services for mobile navigation devices, automotive navigation systems, and Internet-based mapping applications; and provides mobile- and fixed-network infrastructure, communications, and networks service platforms, as well as professional services and business solutions to operators and service providers. Nokia operates in three segments: Devices & Services, HERE, and Nokia Siemens Networks.

Nokia is considering buying networking-gear maker Juniper Networks (NYSE:JNPR) to merge with its Nokia Siemens Networks division, Germany’s Manager Magazin Online reports Thursday, citing sources familiar with the situation. The Nokia board and NSN management are considering deepening the existing sales cooperation with Juniper and possibly merging, the report says, adding that NSN Chief Executive Rajeev Suri traveled to the U.S. late last year to explore Juniper management’s options. A takeover of the U.S. company could be a financial challenge for Nokia, given that Juniper’s current market value is nearly $14 billion dollars and Nokia will be obliged to offer a premium to Juniper shareholders. Nokia, which is selling its handset business to Microsoft Corp. (NASDAQ:MSFT) for 5.4 billion euros ($7.3 billion), is under pressure to put the proceeds of the sale to use, the report says.

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