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Euronews: Takeover Rumors Lift Nokia

In today's EMEA roundup: Nokia stock rises 6% on takeover talk; Telefónica sells half of China Unicom stake; KPN-versus-Slim latest

Paul Rainford

June 11, 2012

3 Min Read
Euronews: Takeover Rumors Lift Nokia

Nokia Corp. (NYSE: NOK), Telefónica SA (NYSE: TEF), KPN Telecom NV (NYSE: KPN) and Orange (NYSE: FTE) start the week in today's trot through the EMEA headlines.

  • Nokia's stock rose 6 percent on the Helsinki exchange on Friday -- the largest rise in seven months for the beleaguered handset giant -- following takeover speculation, according to Bloomberg. Microsoft Corp. (Nasdaq: MSFT), among others, is hovering in the wings, believe some analysts. (See Analyst: Nokia Lumia 'Not a Company Saver', Euronews: Nokia Cash Burn Freaks Analysts and Euronews: Fitch Junks Nokia.)

  • Telefónica has sold half of its stake in China Unicom Ltd. (NYSE: CHU), China's second-largest mobile operator, for HK$11 billion (US$1.4 billion), reports Bloomberg. This will reduce the debt-laden Spanish company's stake in China Unicom to 5 percent. (See Euronews: Layoff Costs Tear Into Telefonica's Q3 , Telefonica Restructures, Creates New Units and Euronews: Telefonica's Layoffs Bill Shock.)

  • Dutch incumbent KPN is looking at spinning off its E-Plus Service GmbH & Co. KG mobile business in Germany as a way of convincing KPN shareholders not to accept the advances of Carlos Slim's América Móvil S.A. de C.V. , reports the Financial Times (subscription required). Last month América Móvil offered to buy up to 27.7 percent of KPN's shares at €8 a share, which KPN said "substantially undervalues" its business. (See Euronews: Slim Makes His Move on KPN and Slim's Dutch Drama .)

  • France Telecom, which already owns 49 percent of Dailymotion , is planning to gain total control of the video-sharing service, reports Reuters, citing a story in Les Echos. According to the paper, the deal could be worth up to €72 million ($90.5 million). (See Orange Teams Up With Dailymotion.)

  • Technicolor (Euronext Paris: TCH; NYSE: TCH), the French video equipment maker, has rejected an improved capital increase offer from JP.MorganChase , which could have resulted in a cash injection of up to €179 million (US$224.5 million), because of the conditions attached to the offer. The Technicolor board has opted instead to recommend to its shareholders the earlier, lower offer from JP Morgan, which could result in a cash boost worth up to €158 million ($198 million). (See Euronews: Investors Fight Over Technicolor.)

  • Vodafone Group plc (NYSE: VOD) managed to pay no corporation tax at all in the U.K. in the most recent financial year, reports the Daily Telegraph. The mobile giant was able to offset its increased capital expenditure against its tax bill. This news will be grist to the mill of those who have already picked out Vodafone as one of the U.K.'s serial offenders when it comes to finding ways to minimize its tax obligations.

  • Nokia Networks has joined the Global TD-LTE (GTI) Partner Forum. NSN has been involved with the Forum for some time, but this formal membership sees its commitment growing, and it now says it is engaged in "multiple GTI technical taskforces" that address various aspects of Long Term Evolution Time Division Duplex (LTE TDD). (See NSN Joins Global TD-LTE Initiative, NSN Supports LTE TDD at 1.9GHz, NSN Ups TD-LTE Ante in India and LTE's Kissin' Cousins .)

  • Swisscom AG (NYSE: SCM) has Googled itself a new chief strategy officer. Jürgen Galler, who has been working for Google (Nasdaq: GOOG) Switzerland for the past five years, succeeds Daniel Ritz, who left the company at the end of January.

    — Paul Rainford, Assistant Editor, Europe, Light Reading

About the Author(s)

Paul Rainford

Assistant Editor, Europe, Light Reading

Paul is based on the Isle of Wight, a rocky outcrop off the English coast that is home only to a colony of technology journalists and several thousand puffins.

He has worked as a writer and copy editor since the age of William Caxton, covering the design industry, D-list celebs, tourism and much, much more.

During the noughties Paul took time out from his page proofs and marker pens to run a small hotel with his other half in the wilds of Exmoor. There he developed a range of skills including carrying cooked breakfasts, lying to unwanted guests and stopping leaks with old towels.

Now back, slightly befuddled, in the world of online journalism, Paul is thoroughly engaged with the modern world, regularly firing up his VHS video recorder and accidentally sending text messages to strangers using a chipped Nokia feature phone.

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