Nokia Shares Slip After Company Denies Mobile-Network Business Sale Talks

By Ian Walker

Nokia shares are trading lower, losing some of the previous sessions' gains, after the Finnish telecommunications company denied a report that it was selling its mobile-networks business.

Shares were down 4 European cents, or 1%, at 3.94 euros in early trading on Friday having risen to a high of 4.12 euros on Thursday before slipping to close at 3.98 euros. Shares have risen 29% over the year to date.

On Thursday, Bloomberg reported that Nokia's mobile-networks assets had drawn interest from potential buyers, including Samsung Electronics.

Citing unnamed sources, Bloomberg said that Nokia had been in talks with advisors over options for the business, including a sale, spinoff or merging it with a rival.

"Nokia is committed to the success of its mobile-networks business, a highly strategic asset for both Nokia and its customers," the company said in a statement late on Thursday.

It added that the company was focused on ensuring the business was well-positioned to service its customers, invest in the portfolio and create value for shareholders.

"Nokia has nothing to announce in relation to the speculations published in an article today, and no related insider project exists," it said late Thursday.

At the time of its second-quarter earnings in July, Nokia said sales at its key mobile-networks business had fallen 25% on year, mainly due to the sharp drop in India, but that it had received a 150 million euro ($166.2 million) boost from a contract settlement with AT&T.

It reported an operating margin of 8.7% in its mobile-networks unit for the quarter and said that it expects to report a margin of between 4% and 7% this year, from 1% to 4% anticipated previously.

Write to Ian Walker at ian.walker@wsj.com

(END) Dow Jones Newswires

August 30, 2024 04:28 ET (08:28 GMT)

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