Nokia shareholders look set to approve Microsoft’s €5.4bn (US$7.16bn) deal to buy the Finnish vendor’s mobile phone business and license its patents.
At the company’s EGM today, 99% of pre-votes from investors representing 45% of all shares were…
Nokia shareholders look set to approve Microsoft’s €5.4bn (US$7.16bn) deal to buy the Finnish vendor’s mobile phone business and license its patents.
At the company’s EGM today, 99% of pre-votes from investors representing 45% of all shares were in favour of the move. The final count will come after a Q&A session that was ongoing as TelecomFinance went to press.
The acquisition was announced in September, following years of speculation about Nokia’s future as it struggled to keep the pace because of a late start in smartphones.
It came just two years after departing Nokia CEO Stephen Elop geared the group around Microsoft’s operating software. Elop, a former Microsoft executive, is now a likely candidate to replace the US group’s CEO Steve Ballmer next year.
From its humble beginnings in the 19th century as a paper mill, Nokia’s rise helped put Finnish technology on the map and represented a significant portion of the country’s GDP. This led some minority investors to criticise the Microsoft deal as the loss of a national icon.
Microsoft’s bid could have potentially faced competition from former Nokia manager Juhani Parda, who however failed to raise the funds to outbid the US giant under a group called Nokita.
JP Morgan is understood to be advising Nokia on the transaction, while Microsoft is reportedly being advised by Goldman Sachs.
After offloading its handset unit, Nokia plans to focus on wireless networks and mapping services.
Reports have suggested it was considering a bid for struggling French rival Alcatel-Lucent, although the Wall Street Journal recently cited sources that said it had decided against making an offer for all or parts of the business.
