LONDON – The price of shares in mobile phone company Nokia Oy was volatile amid heavy trading on Wednesday amid rumors that the company might be bought by Chinese computer maker Lenovo.
"This must be a joke," and "There's nothing ongoing," Reuters quoted Gianfranco Lanci, Lenovo head of Europe, Middle East and Africa, as saying. Nonetheless Nokia's shares closed up at 2.07 euro at the close on Wednesday.
Nokia was once comfortably the leading mobile phone maker but it was caught out by the rapid change to touchscreens and smartphones that have catapulted Samsung and Apple to the top of the heap.
Nokia shares have dropped by more than 70 percent since the company was at its peak value.
There isn't any compelling reason for Lenovo to consider buying Nokia. Lenovo is doing pretty well in PC business. They are considered to be one of the high tech companies in China. If they had considered getting into cell phone market, they would have done it a couple years ago when Android came into market. In the near future, if they consider to join battle of mobile device, they will start from tablet, leveraging its experience and knowhow of mass producing laptop computer. So, in short, what can Nokia bring to the table?
On the other hands, is Nokia really for sales? The fact that Windows phone sales doesn't have a good project is worrying. However, the course won't change over night. I believe Nokia still has a chance. The partnership is crucial. Elop has been and will continue to be really busy tightening up the partnership and convincing the board that the direction is promising.
Nokia now can only be regarded as low end cell phone manufacturer (their low price tag price indeed is quite good in quality) so it really makes sense to end up in China. Probably Lenovo should seriously consider this bargain.
The demise of Nokia is a tragedy for the European high-tech sector. For me, their tie-up with Microsoft was the last nail on the coffin.... Selling to Lenovo actually makes sense as it would allow it to compete more efficiently on price in the lower end of the market where it still has some advantages...
Title should be "Nokia not interested in selling itself" . If Nokia is available for sale, Lenovo or others would snatch them in a heart beat at the current valuation of 8.5B + a premium.