Nokia shares jump 6 percent amid buyout rumors
June 8th, 2012 by admin

Reuters – Shares in Finnish mobile phone maker Nokia (NOK1V.HE) rose 6 percent in heavy volume on Friday driven higher by speculation of takeover interest from South Korean rival Samsung Electronics (005930.KS), traders said.

The sharp rise made Nokia the biggest gainer on the FTSEurofirst 300.FTEU3 index and followed a 40 percent fall in the shares in the past three months.

Analysts played down the chances of a bid from Samsung for Nokia, which has been rapidly losing market share.

“Samsung is flying at the moment and it is hard to see what it would gain from buying Nokia,” Ovum analyst Nick Dillon said. “Any benefit it would gain from Nokia’s patent portfolio or manufacturing facilities would likely be outweighed by the complexities of integrating the two companies.”

Ben Wood, head of research at CCS Insight, said: “This is Friday madness. I can’t think of a rational reason why Samsung would want to buy Nokia at present,”

Nokia shares have moved sharply on speculation of possible takeovers since its stock dived last year due to a strategy shift in its smartphone business. Microsoft (MSFT.O), which is partnering Nokia for its new smartphones, has been seen as the most likely buyer.

Nokia declined to comment and Samsung was not immediately available for comment.

(Reporting by Tarmo Virki. Editing by Jane Merriman)