Hedge fund Third Point discloses purchase of Nokia stock
Daniel Loeb’s Third Point bought shares of Nokia (NOK) late in the third quarter, the hedge fund stated in its quarterly letter to investors. WHAT'S NEW: After Nokia sold its handset business to Microsoft (MSFT) last quarter, Nokia was trading at a significant discount to its potential value, Third Point wrote. Following the Microsoft deal, Nokia had 8 billion euros of cash, and a large portion of that sum will be distributed to Nokia shareholders in coming quarters, the hedge fund added. Moreover, the company's remaining businesses all generate positive cash flow, and "have interesting opportunities and dynamics," the hedge fund believes. Nokia's Nokia Siemens Networks should benefit from prior cost cutting, reduced competition, and upcoming spending on 4G networks, according to Third Point. TODAY'S PRICE ACTION: In mid-morning trading, Nokia rose 1% to $7.23.