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Nokia Corporation Message Board

  • tjmils1933 tjmils1933 Jul 6, 2013 5:33 PM Flag

    Another Take on Nokia's Future

    The NSN deal has been agreed on and during the third quarter the details and the paperwork will be worked out between Nokia and Siemens. Then the bank loan and the loan back to Nokia from Siemens will be transacted.
    At that point sometime in the third or fourth quarter their will be no question that Nokia will have full ownership of this new entity which Nokia will now own 100% of.
    This speculation is based on Nokia having met their targets for the 2nd quarter or hopefully even bettered them substantially.
    When the NSN transaction was being talked about earlier in the year there was thought of bringing in Equity Players that would purchase NSN. Apparently what took place, and this needs checking, Nokia would not part with their 50.1 portion of the Company which placed the bigger equity players in the position of not owning the whole company. The usual play for the equity would be to buy, trim, take out large loans, and then eventually sell the Company for a price substantially above their pricing.
    Since this was not possible, Nokia stepped into the breach, and purchased Siemens portion for what I understand was a great buy. Nokia is now in a position to streamline operations and then put the whole operation up for sale again. The numbers kicked around on potential value were from Nine Billion to as high as Sixteen Billion.
    If the sale price turns out to be approximately 10 Billion. The Nokia pays the bank loan and still has 7.8 Billion in cash. Good use for this would be to buy in One Billion shares at a cost of between 6/7 Billion and then use the remaining cash to expand the Smart Phone and Asha line.
    Do not feel they want to get out of the phone business. They do a great job in this area and even though their two main competitors hold down a large share of the market, they can continue to grow as existing subscribers of the competitors look around for their next phone when their plans run out, plus all the new opportunities that are breaking loose

    Sentiment: Strong Buy

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