Nokia soars as Microsoft deal eases earnings woe

Shares in Finnish telecoms firm Nokia ( NOK1V.HE ) rocket
up more than 40 percent to 4.15 euros, currently their
biggest ever one-day rise in volume 8 times its 90-day
average after striking a 5.44 billion euros deal with
Microsoft for its heavily cash-burning devices & services
division.
Nokia announced that it is selling the division for 3.8 billion euros and
a 10-year license to its wireless patent portfolio for 1.65 billion euros,
or the combined equivalent of 1.4 euros per share in cash, according
to Deutsche Bank.
"Given the material expected benefits to Nokia's earnings, net cash and
upside in the share price from current levels, we upgrade from 'sell' to
'hold'," writes Deutsche Bank in a note, estimating Nokia could trade
up to 4.40 euros per share.
"We do not believe that the deal will face meaningful regulatory
scrutiny as Microsoft does not have a handset business or market
share currently," Deutsche Bank adds.