Nokia's News around a "Hostile" Takeover
Since Nokia’s announcement of the financial results of Q3 2019 in October 2019, the Finish network infrastructure vendor has found itself in a challenging situation. While the company reported net sales of EU€5.7 billion—or US$6.28 billion, corresponding to a 3.6% Quarter on Quarter (QoQ) increase—it also announced a pause in paying dividends to its shareholders to increase the company’s cash flow in order to cope with necessary investments into 5G technology, which proved to be more costly than expected. As a result of this decision and the lowering of 2019 and 2020 outlooks, share price dropped dramatically by 23% within the same day.
This sharp fall gave rise to several speculations on how Nokia will cope in challenging year 2020, with the current health care emergency around COVID-19 exacerbating the situation even further.
On April 17, 2020, the discussion about Nokia’s future experienced a new turn, since a TMT Finance report claimed that Nokia had employed investment banking partner Citibank to defend itself from a h…
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