Shares in Finnish telecoms firm Nokia rocket up more than 40 per cent 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.
