Nokia declined to comment on a media report saying it was working with an investment bank to defend itself from a hostile takeover, Reuters reports. The company's share price surged over 10 percent following the report from TMT Finance.
The report said Nokia had hired Citi, a regular investment banking partner of the Finnish firm, for the deal which could be worth USD 17.4 billion. This follows a similar report in February from Bloomberg that Nokia was exploring strategic options and working with advisers to consider potential asset sales and mergers. These could involve private equity investors.
Nokia shares have been falling since October 2019 as investors worry it might miss out to Huawei and Ericsson in the move to new 5G networks. The share price has shown a small recovery in the past month, which could be from the interested buyer.
The company has forecast a difficult 2020 due to challenges in key markets China, India and the US and suspended its dividends while it focuses on cash flow and continued cost cutting. Earlier this year Nokia also said it would replace its long-time chief executive Rajeev Suri.
