Nokia Denies Rumours That Microsoft Have Acquired Its Mobile Phone Division For $19 Billion
Nokia have officially denied rumours that it has agreed to sell its mobile phone business to Microsoft for $19 billion. The story initially appeared on the website www.bgr.com but the Finnish company have said that the reports are “100% baseless”.
Following the story appearing on the website, shares in Nokia jumped on Wednesday as a reaction interrupting the steep decline that the shares have seen over the past 2 days after the company failed to hit recovery targets once again. The website who published the story cited their source as Eldar Murtazin who the website describes as being an industry insider.A spokesman for Nokia, Doug Dawson told Reuters that “These rumours are 100 percent baseless” which is the terminology use by a company to convey that there is no truth in the rumours.
Traders also reported that as well as Nokia shares climbing, Microsoft`s shares fell on the same news. Nokia shares were 0.8% lower at 4.714 euros after having dropped over 10% following an extension of Tuesday`s 18% slump. Interest in the stock peaked as trading volumes reached 6 times the 6 times the 90 day daily average.
Nokia and Microsoft have recently collaborated within the mobile phone division, specifically the smartphone segment of the market. Nokia`s CEO Stephen Elop has green lighted the decision to use Microsoft`s mobile Windows OS, replacing Nokia`s own Symbian software. The move is designed to make both companies more competitive with the smartphone market and close the gap to Apple, Google and RIM.