Nokia Shares Dip after Report on NSN Tellabs Offer

Shares in Nokia opened lower on Monday after a report that its 50% owned Nokia Siemens
Networks is to offer $7 billion for smaller network equipment maker Tellabs.

Shares in Nokia opened 1% lower, compared with a flat DJ Stoxx European technology index.

Citing a source familiar with the deal, financial news Web site TheStreet.com said NSN -- a 50-50 joint venture between Nokia and Siemens -- is offering about $16 to $17 a share for Tellabs.

Shares in Tellabs closed at $11.85 on Friday.

"This is obviously a rumor and we do not comment on market rumours," said a Nokia Siemens spokesman.

Analysts in Helsinki saw the deal as unlikely, but noted the hefty premium would dent Nokia shares.

"With such a premium and as the timing is in the middle of Nokia Siemens Networks' own integration, the first impression of such a deal would be slightly negative," said Handelsbanken
analyst Karri Rinta. "I cannot think of any other reason for the share price decline."

EQ analyst Jari Honko said: "This is not impossible, but the price seems high."

Contact U.S. News


    Get the best of CNBC in your inbox

    To learn more about how we use your information,
    please read our Privacy Policy.
    › Learn More

Don't Miss

U.S. Video