Microsoft Facilitated Nokia Corporation (ADR) (NYSE:NOK) To Generate €1.5bn Of Financing For Siemens’ 50 Percent Stake
Written by Louis Seveno on September 9, 2013
efinancehub.com
Nokia Corporation (ADR) (NYSE:NOK) has utilized its option to generate €1.5bn of financing which Microsoft Corporation (NASDAQ:MSFT) made available as part of its purchase of Nokia’s devices and services business. On Friday, Nokia has announced its decision to issue three tranches of senior unsecured convertible bonds of worth €500m each to pre-pay the funding for acquisition of Siemens’ 50 percent stake in the Nokia Siemens Networks joint venture this August for €1.7bn.
The financing was provided to Nokia as component of Microsoft’s agreement to purchase Nokia’s devices and services business last week for almost €3.79bn, together with a €1.65bn transaction for licensing Nokia’s patents. Microsoft has lengthened Nokia €1.5bn in the form of three €500m tranches of convertible bonds under the deal. Nokia Corporation (ADR) (NYSE:NOK) shares were 2.51% to $5.51 in current session.
On Monday, Spain’s Telefonica S.A. (ADR) (NYSE:TEF) said that it had finished a financing deal of value $743 million to purchase infrastructure from Nokia’s Nokia Solutions and Networks. Telefonica said that this transaction is the second of its kind after analogous deal in 2011.
Nokia, once leading but long in fall because of the extended recognition of Android and the iPhone, has accepted Microsoft’s Windows Phone as a mean to become prominant again. However, Microsoft’s operating system still has an inadequate 3.5 percent of the smartphone market, after two years of Windows Phone-powered Nokia handsets.Telefonica S.A. (ADR) (NYSE:TEF) shares were up 0.35% in current session.
Microsoft Corporation (NASDAQ:MSFT) has discussed the reasons for the acquisition as its capability to make more money per handset would increase with less redundant marketing efforts and increased approach to the source code for Nokia’s mapping software. However, Microsoft is required to be victorious in the mobile space. The company has struggled a lot over the last 15 years to have an impact in mobile from the tablet-optimized version of Windows XP to SPOT watches to Pocket PCs and Windows Mobile phones, but it has never realized much grip. In the interim, desktop computers are out fashioned and will never experience growth again which stimulated the Microsoft in 90s. Mobile computing will rule in next 20 years until the launch of new innovations, and obviously Windows and Office defined the last 20. |
